Gross investment refers to:
A)private investment minus public investment.
B)net investment plus replacement investment.
C)net investment after it has been "inflated" for changes in the price level.
D)net investment plus net exports.

Question

Quizplus · Accepted Answer

Gross investment is the total investment in new capital goods and includes both net investment (which adds to the stock of capital) and replacement investment (which maintains the existing stock of capital). Therefore, option B - net investment plus replacement investment - correctly represents gross investment.

Gross Investment Refers To