Question

A nation's capital stock was valued at $500 billion at the start of the year and $575 billion at the end. Consumption of private fixed capital in the year was $35 billion. Assuming stable prices, net investment was _____. rev: 04_09_2018

Answer 1

Answer:

$75 billion

Explanation:

Capital stock at the end of the year $575,000

Less Capital stock at the start of the year $500 billion

Net Investment $75 billion

Therefore Assuming stable prices, net investment will be $75 billion