Net private investment equals

Name: Net private investment equals
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net private investment is the amount by which the stock of capital goods changes over a period. Gross private investment (the total amount of investment in capital goods) needs to be adjusted for the amount of wear and tear of existing capital goods, which is the depreciation. Therefore, the formula for net private investment is gross private investment minus depreciation. Business taxes and inventories are not part of this calculation.

Net Private Investment Equals