In 2007, Franceʹs GDP totaled $1.9 trillion and in 2006 GDP was $1.8 trillion. The total amount spent on new capital in 2007 was $357 billion and in 2006 was $335 billion . To calculate the amount of net investment in France for these years, you need to know .
A) the aggregate production function.
B) the amount of financial capital available.
C) depreciation
D) saving

Question

Quizplus · Accepted Answer

To calculate net investment, which is the difference between new capital expenditures and depreciation, we need to know the amount of depreciation. Therefore, C is the correct answer. The aggregate production function, financial capital available, and saving are not directly relevant to calculating net investment.

In 2007, Franceʹs GDP Totaled $1