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What do you mean by stock and flow variable?

Answer»

Stock -The economic variables that are measured at a particular point of time are called stock variables. Stock is static concept. It has no time dimensions. E.g. bank balance as on 1st Oct 2011 is Rs 5000.

Flow-The economic variables that are measured during a period of time are called flow variables. Flow is a dynamic concept. It has time dimensions. E.g. Interest earned on bank deposits for 1 year, i.e. from 1st April 2011 to 31st March 2012.



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