Ask Question
23 May, 18:23

A nation's capital stock was valued at $300 billion at the start of the year and $350 billion at the end. Consumption of private fixed capital in the year was $25 billion. Assuming stable prices, gross investment was?

+5
Answers (1)
  1. 23 May, 18:36
    0
    Gross investment will be equal to $175 billion

    Explanation:

    We have given nation's capital stock at the start = $200 billion

    And capital stock at the end = $350 billion

    Consumption of private fixed capital in the year = $25 billion

    We have to find the gross investment

    Gross investment is equal to

    Gross investment = Capital stock at the end of the year + consumption of private fixed capital - Capital stock at the starting of the year

    = $350+$25-$200 = $175

    So gross investment will be equal to $175 billion
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A nation's capital stock was valued at $300 billion at the start of the year and $350 billion at the end. Consumption of private fixed ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers