Asked by Michael McGuire on Jul 18, 2024
Verified
Which of the following is a flow variable?
A) Price level
B) U.S.population
C) Money supply
D) Investment spending
E) Household debt
Flow Variable
A quantity that is measured over a specified period of time, contrasting with stock variables which are measured at one specific time.
Money Supply
The total amount of monetary assets available in an economy at a specific time, including currency, coins, and balances held in checking and savings accounts.
Household Debt
The total amount of debt, including mortgages, credit cards, loans, etc., owed by all members of a household.
- Distinguish between stock and flow variables within the context of economics.
Verified Answer
YA
Yesenia AlemanJul 22, 2024
Final Answer :
D
Explanation :
Investment spending is a flow variable because it represents an amount per unit of time, such as dollars per year, indicating how much is being spent on investments over a specific period. Flow variables are measured over an interval of time, unlike stock variables, which are measured at a point in time.
Learning Objectives
- Distinguish between stock and flow variables within the context of economics.