Go to the St. Louis Federal Reserve FRED database, and find data on net domestic investment (A557RC1Q027SBEA)
Question:
Go to the St. Louis Federal Reserve FRED database, and find data on net domestic investment (A557RC1Q027SBEA) and gross domestic investment (W170RC1Q027SBEA).
a) For each series, report the values for the most recent quarter of data available. Why are the values not equal?
Comment on the relative sizes of the two values.
b) Calculate depreciation for the most recent quarter of data available.
c) Assuming the depreciation rate is 10%, calculate the current total size of the capital stock.
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