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americans use it for technology and electricity for energy
Wiki User
∙ 9y ago
Investment spending is a flow variable. It denotes the amount of money spent on purchasing new physical capital or increasing the stock of existing capital during a particular period of time, typically a year. It is different from the stock variable, which represents the total accumulation of physical capital at a given point in time.
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Is saving a stock variable?
no, it a flow variable
Is export a stock or a flow variable?
It is a flow.
Is GDP a stock variable or a flow?
Flow
Is inflation a stock variable?
flow
Why does investment spending not equal saving in the circular flow?
In the circular flow, investment spending does not equal saving because goods and services are still needed therefor consumption still requires spending in return pays taxes and companies.
Do Balance sheet come under stock variable or flow variable?
yea
What are the examples of stock variable and flow variable?
A stock variable measures a variable at a specific point in time, for example the amount of foreign direct investment at the moment in a specific country. This variable is only denominated in terms of a currency. A flow variable on the other hand looks at the measure of a variable over a period of time, for example the GDP of a country as this variable looks not only at a fiscal amount but also also a time amount (in this case the amount of money spent in the economy over the course of a year).
Define stock and flow with example?
examples of stock variables and flow variables stock: saving,capital,labour force, wage rate, flow: income,investment,balance of payment
Is investment form the most important form of saving in the circular flow of income and spending?
yes
What is stock variables?
A variable that depends on an instant rather than a flow of time
What is the difference between a stock variable and a flow variable?
A stock variable is measured at one specific time, and represents a quantity existing at that point in time (say, December 31, 2004), which may have accumulated in the past. A flow variable is measured over an interval of time. Therefore a flow would be measured per unit of time (say a year). Flow is roughly analogous to rate or speed in this sense
Why is planned investment called an injection?
Planned investment is called an injection because it refers to new spending or investment that is added to the circular flow of income and expenditure in an economy. It injects additional income and spending into the economy, stimulating economic activity and potentially increasing aggregate demand. In contrast, unplanned changes in inventory levels are called leakages because they remove income and spending from the circular flow.
