In the economy,the level of capital will remain the same if
A) net investment is zero.
B) investment is zero.
C) output is increasing.
D) net investment is greater than investment.
E) net investment is less than investment.

Question

Quizplus · Accepted Answer

Net investment represents the change in the level of capital, which is the difference between investment and depreciation. So, if net investment is zero, it means that the level of capital is not changing, as any increase from investment is offset by a decrease from depreciation.

In the Economy,the Level of Capital Will Remain the Same