The equation $\bar { s } { F } \left( K _ { t } , \bar { L } \right) - \bar { d } K _ { t }$ , is called:
A) saving
B) investment
C) net investment
D) the capital stock
E) depreciation

Question

The equation $\bar { s }  { F } \left( K _ { t } , \bar { L } \right) - \bar { d } K _ { t }$ , is called:
A) saving
B) investment
C) net investment
D) the capital stock
E) depreciation

Quizplus · Accepted Answer

The equation represents net investment, which is the difference between total investment ($\bar{s}F(K_t, \bar{L})$) and depreciation ($\bar{d}K_t$).

The Equation sˉF(Kt,Lˉ)−dˉKt\bar { s } { F } \left( K _ { t } , \bar { L } \right) - \bar { d } K _ { t }sˉF(Kt​,Lˉ)−dˉKt​

The Equation $\bar { s } { F } \left( K _ { t } , \bar { L } \right) - \bar { d } K _ { t }$