If net investment in 2016 is $350 billion and gross investment in 2016 is $500 billion, depreciation in 2016 is
A) $0.7 billion.
B) $150 billion.
C) $175 billion.
D) $250 billion.

Question

Quizplus · Accepted Answer

Depreciation is the decrease in the value of an asset over time. Net investment is gross investment minus depreciation, so depreciation can be calculated as: 
Depreciation = Gross investment - Net investment 
Depreciation = $500 billion - $350 billion 
Depreciation = $150 billion 
Therefore, the answer is B, $150 billion.

If Net Investment in 2016 Is $350 Billion and Gross