In the economy,the level of capital will decrease if
A) the economy is not in a steady state.
B) depreciation is zero.
C) net investment is negative.
D) net investment is less than investment.
E) net investment is greater than investment.

Question

Quizplus · Accepted Answer

If net investment is negative, it means that the economy is not investing enough to replace the depreciated capital. As a result, the level of capital in the economy will decrease.

In the Economy,the Level of Capital Will Decrease If