Answer the question on the basis of the following data.All figures are in billions of dollars. $\begin{array} { l r }
\text { Gross Investment } & \$ 18 \
\text { National Income } & 100 \
\text { Net Exports } & 2 \
\text { Personal Income } & 85 \
\text { Personal Consumption Expenditures } & 70 \
\text { Saving } & 5 \
\text { Government Purchases } & 20 \
\text { Net Domestic Product } & 105 \
\text { Statistical Discrepancy } & 0
\end{array}$ Refer to the data.Consumption of fixed capital is:

Question

Answer the question on the basis of the following data.All figures are in billions of dollars. $\begin{array} { l r } 
\text { Gross Investment } & \$ 18 \
\text { National Income } & 100 \
\text { Net Exports } & 2 \
\text { Personal Income } & 85 \
\text { Personal Consumption Expenditures } & 70 \
\text { Saving } & 5 \
\text { Government Purchases } & 20 \
\text { Net Domestic Product } & 105 \
\text { Statistical Discrepancy } & 0
\end{array}$ Refer to the data.Consumption of fixed capital is:

Quizplus · Accepted Answer

Consumption of fixed capital is equal to Gross Investment minus Net Investment. Net Investment is equal to Gross Investment minus Depreciation. Depreciation is not given in the data, so we cannot calculate Net Investment. However, we can calculate Consumption of Fixed Capital as follows:Consumption of Fixed Capital = Gross Investment - Net Investment= $18 - (Gross Investment - Depreciation)= $18 - ($18 - Depreciation)= $18 - $18 + Depreciation= DepreciationSince Depreciation is not given in the data, we cannot calculate Consumption of Fixed Capital. However, we can say that Consumption of Fixed Capital is greater than or equal to $0.

Answer the Question on the Basis of the Following Data