When gross private domestic investment exceeds depreciation, it can be concluded that

Question

Quizplus · Accepted Answer

Gross private domestic investment refers to all investments made within a country by private individuals and firms. Depreciation, on the other hand, refers to the decrease in value of assets over time due to wear and tear. When gross private domestic investment exceeds depreciation, it means that the economy is adding more capital stock than it is losing through depreciation. This is known as net investment, which is positive in this case. Therefore, the correct answer is A.

When Gross Private Domestic Investment Exceeds Depreciation, It Can Be