During the year, suppose a country's total purchases of newly produced capital goods is $2,000 billion, issues $1,600 billion of stock certificates, and has $500 billion in depreciation. Gross investment in this country equals
A)$4,100 billion.
B)$3,600 billion.
C)$2,000 billion.
D)$2,100 billion.
E)$2,500 billion.

Question

Quizplus · Accepted Answer

Gross investment is the total amount spent on new capital goods, which is $2,000 billion in this case. Depreciation and stock issuance do not affect the calculation of gross investment.

During the Year, Suppose a Country's Total Purchases of Newly