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Classify each of the following as either a stock​ (S) or a flow​ (F).
a. Myung Park earns​ $850 per week
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b. Time Warner purchases​ $100 million in new computer equipment this month
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No, the answer is a F . I don't know why
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c. Sally Schmidt has​ $1,000 in a savings account at a credit un
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d. XYZ, Inc., produces 200 units of output per week.
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e. Giorgio Giannelli owns three private jets.
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f. ​DaimlerChrysler's inventories decline by 750 autos per month.
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g. Russia owes​ $25 billion to the International Monetary Fund.
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This would be classified as a flow (F) because it represents an ongoing amount that is being earned per week.
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This would be classified as a stock (S) because it represents a specific amount of new computer equipment that Time Warner has purchased at a particular point in time.
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You are correct, I apologize for the mistake. The correct classification is a flow (F) since the purchase of new computer equipment represents an ongoing spending activity. Thank you for pointing that out.
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This would be classified as a stock (S) because it represents a specific amount of money that Sally Schmidt currently has in her savings account at the credit union.
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This would be classified as a flow (F) because it represents the rate at which XYZ, Inc. produces units of output per week.
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This would be classified as a stock (S) because it represents a specific number of private jets that Giorgio Giannelli currently owns.
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This would be classified as a flow (F) because it represents the rate at which DaimlerChrysler's inventories decline, specifically by 750 autos per month.
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This would be classified as a stock (S) because it represents a specific amount of debt that Russia owes to the International Monetary Fund.