The amount of capital in an economy is a ______ and the amount of investment is a ______.
A) flow; stock
B) stock; flow
C) final good; intermediate good
D) intermediate good; final good

Question

Quizplus · Accepted Answer

Capital is a stock variable as it represents the total amount of goods and assets that are available in the economy at a given point in time. Investment, on the other hand, is a flow variable as it represents the amount of funds that are being put into the economy over a certain period of time. Therefore, option B is the correct answer.

The Amount of Capital in an Economy Is a ______