Gross investment minus net investment is
A) the change in inventories.
B) total investment.
C) depreciation.
D) zero.

Question

Quizplus · Accepted Answer

Gross investment is the total amount invested in capital goods during a particular period, while net investment is the change in the stock of capital goods. This change in the stock of capital goods is a result of gross investment offset by the depreciation of existing capital goods. Therefore, gross investment minus net investment will give us the depreciation of existing capital goods, which is option C.

Gross Investment Minus Net Investment Is