Net investment is the amount of new private investment that remains after depreciation has been taken into account. In other words, it is the amount of investment that adds to the economy's stock of capital. Option B refers to gross investment and option C only considers new purchases, while option D includes depreciation.

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Net Investment Is

Question 43

Multiple Choice

Net investment is

A) what is left over from total new private investment after depreciation.
B) the total amount of private investment purchases, whether new or previously existing.
C) the total amount of new private investment purchases.
D) gross investment plus depreciation.

Correct Answer: