Question

Distinguish between stock and flow. Between net investment and capital which is a stock and which is a flow?

Answer 1

Stock	Flow
Stock relates to a point of time	Flow relates to a period of time.
Stock is not time dimensional.	Flow is time dimensional as per hour, per month, per year.
Stock influences the flow. Greater the glow of capital, greater is the flow of goods and services.	Flow influences the stock. For example: monthly increase in the supply of money leads to an increase in the quantity of money.
Example: Wealth, capital, etc.	Example: Income, capital formation.

Between net investment and capital, capital is a stock since it is measured over a point of time and net investment is a flow since it is measured over a specified period of time.