For the nation's capital stock to grow,net investment must be positive.

Question

Quizplus · Accepted Answer

Net investment is the difference between gross investment (total amount invested in new capital goods) and depreciation (decrease in value of existing capital goods). If net investment is positive, it means that the amount invested in new capital goods is more than the decrease in value of existing capital goods due to depreciation, resulting in the growth of the nation's capital stock.

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