For the nation's capital stock to grow,net investment must be positive.
Because some capital wears out each year due to depreciation,the capital stock will grow only if the worn-out part is replaced and even more capital is added.

Question

Quizplus · Accepted Answer

This statement is true. Net investment refers to the amount of investment in new capital assets after accounting for depreciation. If net investment is positive, it means that more capital is being added than is being worn out through depreciation, which results in the growth of the capital stock.

For the Nation's Capital Stock to Grow,net Investment Must Be