Which statement is correct? A) If investment depreciation, the nation's capital stock will grow. B) If investment

Question

Which statement is correct?
A) If investment > depreciation, the nation's capital stock will grow.
B) If investment < depreciation, the nation's capital stock will grow.
C) If investment = depreciation, the nation's capital stock will grow.
D) If investment and depreciation both equal zero, the nation's capital stock will grow.

Quizplus · Accepted Answer

If investment is greater than depreciation, it means that more capital is being added to the economy than is being depleted, resulting in an increase in the nation's capital stock.

Which Statement Is Correct