Question: Which statement correctly explains the difference between stocks and flows in an economy? Stocks refer to economic variables measured at a point in time, while
Which statement correctly explains the difference between stocks and flows in an economy? Stocks refer to economic variables measured at a point in time, while flows refer to variables measured over a period of time. Stocks are always larger than flows because they accumulate over time. Flows represent the total quantity of a resource available in an economy at a given moment. Stocks and flows are interchangeable concepts in economic measurement
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