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

Question

Quizplus · Accepted Answer

Capital is a stock because it represents the total accumulated assets at a point in time, while investment is a flow because it represents the addition to the capital stock over a period of time.

The Amount of Capital in an Economy Is A(n) _____