CH 23 Finance Saving Investment - Testbank - University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor

CH 23 Finance Saving Investment - Testbank - University of...

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University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi CH 23 Finance Saving Inv estment 1) Capital is A) the tools, instruments, machines, buildings, and other items that have been produced in the past and that are used today to produce goods and services. B) financial wealth. C) net investment. D) gross investment. E) the sum of investment and government expenditure on goods. Topic: Financial Institutions and Financial Markets 2) Gross investment A) is the change in the value of capital B) includes only replacement investment. C) is the total amount spent on new capital. D) equals saving minus wealth. E) equals wealth minus saving. Topic: Financial Institutions and Financial Markets 3)The total amount spent on new capital is A)depreciation.B)net investment.C)saving.D)gross investment.E)wealth. Topic: Financial Institutions and Financial Markets 4)In January 2008, Tim's Gyms, Inc. owned machines valued at $1 million. During the year, the market value of themachines fell by 30 percent. During 2008, Tim spent $200,000 on new machines. During 2008, Tim's gross investmentwas Topic: Financial Institutions and Financial Markets 5)Net investment equals Topic: Financial Institutions and Financial Markets 1
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6)The increase in the value of capital is Topic: Financial Institutions and Financial Markets 7)Capital stock increases when A)gross investment exceeds net investment.B)net investment exceeds gross investment.C)gross investment is negative.D)net investment is zero.E)net investment is positive. Topic: Financial Institutions and Financial Markets 8)If the economy's capital increases over time, Topic: Financial Institutions and Financial Markets 9)If the economy's capital decreases over time, Topic: Financial Institutions and Financial Markets
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