If depreciation exceeds gross investment,
A) Net investment exceeds depreciation.
B) Gross investment is negative.
C) The difference between GDP and NDP is smaller than gross investment.
D) The nation's capital stock is being depleteD.Gross investment is positive as long as some new plants and equipment are being produced.But the stock of capital-the total collection of plants and equipment-won't grow unless gross investment exceeds depreciation.That is,the flow of new capital must exceed depreciation,or our stock of capital will decline.
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