During the Great Depression, capital stock in the United States was reduced since Select one: a....

Question

Question

During the Great Depression, capital stock in the United States was reduced since Select one: a....

During the Great Depression, capital stock in the United States was reduced since

Select one:

a. gross investment was negative.

b. gross investment was above depreciation.

c. gross investment was below depreciation.

d. gross investment was equal to depreciation.

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Since during the great depression, the demand for goods and services were very low. So there were unsold inventory in the stock. So firm decreased investment on capital due to less demand. Hence production decrease, so there were no new investment in the US.

Since firm lose confidence, so they decreased new investment while depreciation of the existing capital continued.

It means during depression, the gross investment was less than the depreciation. Therefore capital stock in US decreased.

Hence option c is the correct answer.

Add a comment

Answer 2

Similar Homework Help Questions

During the time leading up to the Great Depression of the 1930's in the United States,...

During the time leading up to the Great Depression of the 1930's in the United States, Europe was already in substantial From impacting the United States the Federal Reserve Banks took steps to seriously restrict state of depression. In an effort to keep this European depressiorn cial capital (money) from flowing from the U.S. to Europe. This resulted in restrictions the supply of money in Europe. Some economists have argued that this deepened the European depression. IF the economy operated...
When the government pursued a “tight money” policy during the Great Depression, it caused aggregate demand...

When the government pursued a “tight money” policy during the Great Depression, it caused aggregate demand to decrease because it: Choose one: A. reduced consumer spending and investment spending. B. caused tax rates to decrease. C. led to very high rates of inflation, which eroded household spending. D. caused a rapid decline in exports to other countries. E. led to an increase in stock prices and household wealth.
5. In the United States, money is backed by: Select one: a. no physical commodity. b....

5. In the United States, money is backed by: Select one: a. no physical commodity. b. gold. c. None of these answers is correct. d. oil e. silver. 6. Practically, in the long run the real interest rate is equal to: Select one: a. the marginal product of capital. b. the rate of return to long-term bonds. c. a savings account. d. the return to stock markets. e. the return to housing. 7. Figure 9.5: U.S. Inflation 1960-2015 PERCENT 2012...

Since at least 1975, the United States has had a –SELECT A LABELservicestrade surpluspositivegoodstrade deficitnegative balance...

Since at least 1975, the United States has had a –SELECT A LABELservicestrade surpluspositivegoodstrade deficitnegative balance of trade, also known as a –SELECT A LABELservicestrade surpluspositivegoodstrade deficitnegative. However, it is clear that this trend is driven primarily by only one of the components of U.S. trade. If the distinction is made between the trade of goods versus the trade of services, it turns out that the United States enjoys a trade surplus for –SELECT A LABELservicestrade surpluspositivegoodstrade deficitnegative, but a...
The financial crisis of 2007–2009 was the most severe one since the Great Depression of the...

The financial crisis of 2007–2009 was the most severe one since the Great Depression of the 1930s. What were the main causes of the 2007–2009 financial crisis other than the housing market collapse? What were its impacts on the U.S. financial institutions and markets? If you were an economic policy decision maker, what could you have done better to resolve the financial crisis during that period?
16. The inost severe financial crisis since the Great Depression of the 1930s occurred in which...

16. The inost severe financial crisis since the Great Depression of the 1930s occurred in which year? A. 1974 B. 1994 C. 2008 D. 2011 17. Which of the following agencies does not regulate the financial markets? A. National Federation of Financial Exchanges (NFFE) B. Securities and Exchange Commission (SEC) C. Federal Deposit Insurance Corporation (FDIC) D. Federal Reserve (The Fed) 18. Whose signature may be on the dollar bill in your pocket? A. Gary Cohen B. Steven Mnuchin C....

The Great Financial Crisis (GFC) in the United States: Causes and Policy Responses Goal Analyze the...

The Great Financial Crisis (GFC) in the United States: Causes and Policy Responses Goal Analyze the recent (2008-2009) episode in the United States – the Great Financial Crisis (or Great Contraction). Your job is to write a 500-word essay that will: (a) discuss the antecedents to the episode – seeds of the crisis that were previously sown. Then, using the IS-LM model, show both (b) the shocks to the economy which occurred and (c) the government policy response. Also, provide...
What made the recession of 2007minus 2009 different than any other recession since the Great Depression?...

What made the recession of 2007minus 2009 different than any other recession since the Great Depression? A. The government did not implement a fiscal stimulus. B. The impact was primarily limited to the financial sector. C. The Fed failed to reduce interest rates. D. It was accompanied by a financial crisis.
Answer ASAP Please Most doctors in the United States are employed by: Select one: a. Medicare...

Answer ASAP Please Most doctors in the United States are employed by: Select one: a. Medicare b. Medicaid c. private sector d. Obamacare

During the Great Depression, unemployment peaked at A. 81%. B. over 20%. C. between 15 and...

During the Great Depression, unemployment peaked at A. 81%. B. over 20%. C. between 15 and 20%. D. 10%.

During the Great Depression, capital stock in the United States was reduced since Select one: a....

Homework Answers

Add Answer to:
During the Great Depression, capital stock in the United States was reduced since Select one: a....

Post as a guest

Earn Coins

During the time leading up to the Great Depression of the 1930's in the United States,...

When the government pursued a “tight money” policy during the Great Depression, it caused aggregate demand...

5. In the United States, money is backed by: Select one: a. no physical commodity. b....

Since at least 1975, the United States has had a –SELECT A LABELservicestrade surpluspositivegoodstrade deficitnegative balance...

The financial crisis of 2007–2009 was the most severe one since the Great Depression of the...

16. The inost severe financial crisis since the Great Depression of the 1930s occurred in which...

The Great Financial Crisis (GFC) in the United States: Causes and Policy Responses Goal Analyze the...

What made the recession of 2007minus 2009 different than any other recession since the Great Depression?...

Answer ASAP Please Most doctors in the United States are employed by: Select one: a. Medicare...

During the Great Depression, unemployment peaked at A. 81%. B. over 20%. C. between 15 and...

During the Great Depression, capital stock in the United States was reduced since Select one: a....

Homework Answers

Add Answer to: During the Great Depression, capital stock in the United States was reduced since Select one: a....

Post as a guest

Earn Coins

Add Answer to:
During the Great Depression, capital stock in the United States was reduced since Select one: a....