The Measured Capital Stock in Developed Countries

Multiple Choice

The measured capital stock in developed countries

A) overestimates real capital growth because capital prices have risen dramatically in recent years
B) underestimates real capital growth because machines have become more powerful and less expensive
C) overestimates real capital growth because the manpower needed to operate new machines in greater than in previous years
D) underestimates real capital growth because it does not include financial investments
E) overestimates real capital growth because it includes government consumption expenditures