In calculating gross private domestic investment, a __ change in __ must be subtracted from the total investment for that particular year.Multiple choice question.negative; the balance of paymentsnegative; demandpositive; inventoriesnegative; inventories

Gross investment is ______Multiple choice question.the total amount of new capital goods less replacement goodsthe total amount of new capital goods plus replacement goodsthe wear and tear on private investmentthe total amount of new capital goods, both replacement and additional capital

a. Evaluate: “In 1933 net private domestic investment was negative R6 billion. This means that in that particular year the economy produced no capital goods at all.”  This statement is multiple choice 1correct, because negative net investment means the economy produced no new capital goods in that year.incorrect, because negative net investment does not mean the economy produced no new capital goods in that year.incorrect, because gross investment must have exceeded depreciation.correct, because gross investment must have exceeded depreciation.

b. If you were to determine net domestic product (NDP) through the expenditures approach, the appropriate measure of investment spending to use is multiple choice 2gross private domestic investment, because it adds in depreciation.gross private domestic investment, because it subtracts off depreciation.net private domestic investment, because it subtracts off depreciation.net private domestic investment, because it adds in depreciation.

Which of the following is equal to net investment?Multiple choice question.Gross investment minus depreciationDepreciation plus GDPGDP minus final salesGross investment minus final sales

If __ is negative, the __ stock has decreased, and vice versa.Multiple choice question.gross investment; capitalcapital; capitalnet investment; capitalcapital; net investment