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17 December, 07:08

The following data on capital stock (plant, equipment, housing and inventory) are available for the Republic of Capika for the year of 2009. Stock of capital on January 1, 2009: $11 comma 000 billion. Stock of capital on December 31, 2009: $11 comma 750 billion. From this one can conclude that in 2009, the level of net investment =

$11,375

$11,750

$11,000

750 billion.

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Answers (1)
  1. 17 December, 10:38
    0
    750 billion

    Explanation:

    The computation of the net investment is shown below:

    = Stock of capital on December 31, 2009 - Stock of capital on January 1, 2009

    = $11,750 billion - $11,000 billion

    = $750 billion

    We simply take the difference between the ending balance of capital stock and the beginning balance of capital stock to compute the net investment level.
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