An economy is enlarging its stock of capital goods

Name: An economy is enlarging its stock of capital goods
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Enlarging the stock of capital goods requires that the level of gross investment, which is the amount of investment made in a period, exceed the level of depreciation, which is the amount of wear and tear on existing capital goods. Therefore, choice B is the correct answer as it states that an economy is enlarging its stock of capital goods when gross investment exceeds depreciation.

An Economy Is Enlarging Its Stock of Capital Goods