The concept of net domestic investment refers to
A) the amount of machinery and equipment used up in producing the GDP in a speciﬁc year.
B) the difference between the market value and book value of outstanding capital stock.
C) gross domestic investment less net exports.
D) total investment less the amount of investment goods used up in producing the year's output.

Question

Quizplus · Accepted Answer

Net domestic investment refers to the total amount of investment made in a specific year less the amount of investment goods used up in producing the year's output. It is a measure of the increase in the country's capital stock. Choice A refers to depreciation, choice B refers to the difference between two accounting measures, and choice C includes the impact of trade.

The Concept of Net Domestic Investment Refers to