In 1933 net investment was minus $208 million.This meant that:
A)gross investment exceeded depreciation by $208 million.
B)the economy was expanding in that year.
C)the production of 1933's GDP used up more capital goods than were produced in that year.
D)the economy produced no capital goods at all in 1933.

Question

Quizplus · Accepted Answer

Net investment is calculated by subtracting depreciation from gross investment. A negative net investment value means that the economy used up more capital goods (through depreciation) than were produced in that year. Therefore, choice C is correct. Choices A, B, and D are all incorrect.

In 1933 Net Investment Was Minus $208 Million