Read the two statements and choose the correct option.
I. A flow has a time dimension, such as per month or per year.
II. A flow changes the size of a stock.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A flow is always 'per period', so I is true.
Net investment (a flow) changes the capital stock; saving changes wealth. II is true.

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Read the two statements and choose the correct option.I. A flow has a time dimension, such as per month or per year.II. A flow changes the size of a stock.