When a firm buys a new computer ________ increases,and when the firm gets rid of old computers ________ decreases.
A) investment; investment
B) net investment; net investment
C) capital; capital
D) investment; depreciation
E) depreciation; investment

Question

Quizplus · Accepted Answer

When a firm buys a new computer, its capital increases because it adds to the stock of capital goods. When the firm gets rid of old computers, its capital decreases as it reduces the stock of capital goods.

When a Firm Buys a New Computer ________ Increases,and When