In an economy with no government or foreign sector, the stock of capital depends on:

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In an economy with no government or foreign sector, the stock of capital depends on all of the above factors - depreciation, gross investment, and saving. Depreciation refers to the decline in the value of capital goods due to wear and tear, obsolescence, and other factors. Gross investment refers to the total amount of investment in new capital goods, which increases the stock of capital. Saving, on the other hand, refers to the portion of income that is not consumed but rather invested in new capital goods, also increasing the stock of capital. Therefore, all three factors contribute to the determination of the stock of capital in such an economy.

In an Economy with No Government or Foreign Sector, the Stock