An example of a stock variable is ________ and an example of a flow variable is ________. a. depreciation; capital b. capital; investment c. investment; capital d. investment; depreciation

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Chapter31: Capital Markets
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An example of a stock variable is ________ and an example of a flow variable is ________.

a. depreciation; capital
b. capital; investment
c. investment; capital
d. investment; depreciation
Expert Solution
Step 1

A stock variable refers to the variable and it is considered to be an independent in the time that includes the difference and also works as the point of investment.

A flow variable is the one whose value changes with time or depends on a span of time. Income is one of the examples of the flow variable.

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