If in some year gross investment was $120 billion and net investment was $65 billion, then in that year the country's capital stock
A) may have either increased or decreased.
B) increased by $65 billion.
C) increased by $55 billion.
D) decreased by $55 billion.

Question

Quizplus · Accepted Answer

Net investment is the addition to the capital stock, so if gross investment was $120 billion and net investment was $65 billion, the capital stock increased by $65 billion.

If in Some Year Gross Investment Was $120 Billion and Net