Question

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.

Answer 1

Answer:

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.