Additions to the nation's capital stock are brought about through
A) the current account surplus.
B) investment.
C) investment and the current account surplus.
D) investment and the government budget surplus.
E) government deficit.

Question

Quizplus · Accepted Answer

Additions to the nation's capital stock are primarily brought about through investment, which refers to the purchase of physical and financial assets with the goal of generating income and increasing wealth. The current account surplus refers to the difference between a country's exports and imports, and does not directly contribute to the expansion of a nation's capital stock. Government budget surplus and deficit relate to the government's revenue and expenditure, respectively, and do not necessarily increase the nation's overall capital stock.

Additions to the Nation's Capital Stock Are Brought About Through