Asked by Nachelle Culpepper on Jun 12, 2024

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An example of a stock variable in economic theory will be:

A) the amount of money saved by an individual each week.
B) the amount of money spent on buying gasoline each month.
C) the weekly grocery bill of an average household.
D) the total value of the government bond held by an individual.
E) the total fiscal spending during a particular quarter.

Stock Variable

A quantity measured at one specific time, contrasting with flow variables, which are measured over a period of time.

Government Bond

A type of security issued by a government to raise funds from investors, with a promise to pay regular interest and repay the principal at maturity.

Fiscal Spending

Government expenditures on goods, services, and public works financed by taxes, borrowing, or other resources.

  • Identify the distinctions between flow and stock variables in economic studies.
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SR
Sophia RomeroJun 14, 2024
Final Answer :
D
Explanation :
A stock variable is a measure of value at a specific point in time, and the total value of government bonds held by an individual is a measure of value at a specific point in time. The other options are flow variables as they measure changes over a period of time.