What is the difference between investment and physical capital in a macroeconomic model?
A) There is no difference. They are different terms for the same thing.
B) Physical capital is expenditures on buildings and equipment. Investment is savings.
C) Physical capital is buildings and equipment used in production. Investment is the expenditure on physical capital made in the hope of earning a return.
D) Physical capital is the money used in production in the hope of earning a return. Investment is the forgone consumption.
Correct Answer:
Verified
Q7: Depreciation of capital refers to the:
A) wearing
Q8: Countries with higher rates of investment tend
Q9: How do higher savings rates contribute to
Q10: The very small loans that are made
Q11: (Table 1: Macroeconomic Data for Econia)
Q13: The GDP expenditure approach model leads to
Q14: Some capital produced each year replaces capital
Q15: Private saving in macroeconomic models is NOT:
A)
Q16: (Table 1: Macroeconomic Data for Econia)
Q17: Net taxes are taxes that are collected
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