Which of the following is true in the United States, based on the experience of the past two decades (1990-2007)?

Question

Quizplus · Accepted Answer

Based on data from 1990-2007, depreciation (the decrease in value of physical capital assets) was greater than net private domestic investment (the amount of investment after subtracting depreciation), indicating that companies were not investing enough to replace their existing assets. Gross private domestic investment refers to the total amount of investment made by companies, including investment in replacement of existing assets and investment in new projects. Therefore, Option A is not correct. Option B is not correct because depreciation cannot be greater than gross private domestic investment as it is a component of it. Option D is also not correct as net private domestic investment is always less than gross private domestic investment, as it is gross private domestic investment minus depreciation.

Which of the Following Is True in the United States