All of the following are flow variables except: (a) consumer's monthly savings (b) the quarterly government...
All of the following are flow variables except:
(a) consumer's monthly savings
(b) the quarterly government budget deficit
(c) the annual investment
(d) the amount of capital in the economy
Homework Answers
Option (d).
Monthly savings is measured over a period of 1 month. Quarterly budget deficit is measured over a period of 1 quarter. Annual investment is measured over a period of 1 year. So all these 3 are flow variables. Since amount of capital in economy is measured as at a particular point of time, it is a stock variable.
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