Addition to the stock of capital of a firm is known as:
AInvestment
BConsumption
CDepreciation
DInventory
Answer & Solution
Correct answer: A. Investment
1. Change in inventory counts as investment.
2. Adding to capital stock is investment.
3. Fixed business and residential are the other kinds.
_Source: syllabus Introductory Macroeconomics, Chapter 2, National Income Accounting._
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