The measured capital stock in developed countries
A) overestimates real capital growth because capital prices have risen dramatically in recent years
B) underestimates real capital growth because machines have become more powerful and less expensive
C) overestimates real capital growth because the manpower needed to operate new machines in greater than in previous years
D) underestimates real capital growth because it does not include financial investments
E) overestimates real capital growth because it includes government consumption expenditures
Correct Answer:
Verified
Q23: The next questions refer to the following.
Consider
Q24: If realized capital gains are counted as
Q25: According to the permanent income hypothesis,
A) consumption
Q26: The useful economic life of a machine
Q27: The next questions refer to the following.
Consider
Q29: The effect of an increase in interest
Q30: Which of the following is least likely
Q31: Investment is important to the short run
Q32: An entrepreneur with current income of $200,000
Q33: The marginal propensity to consume is difficult
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