Which of the following is an example of a flow variable in economics?
A. Money supply at a point in time
B. National income
C. National wealth
D. Capital stock
Answer: Option B
Solution (By JKSSB Mock Tests)
National income is a flow variable as it is measured over a period of time. Wealth, capital stock and money supply at a point in time are stock variables.
Explanation:
A large body of research finds that financial development—deeper, more efficient and more inclusive financial systems—tends to raise long-run growth by relaxing credit constraints and improving resource allocation.
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