If gross private domestic investment exceeds depreciation, then

Question

Quizplus · Accepted Answer

Gross private domestic investment is the total amount invested in new capital goods by private businesses, while depreciation is the amount of capital goods that have worn out or become obsolete. If gross private domestic investment exceeds depreciation, it means that more new capital goods are being created than are being lost due to depreciation. This results in a positive net private domestic investment, which adds to the existing capital stock and contributes to economic growth.

If Gross Private Domestic Investment Exceeds Depreciation, Then