If the economy's capital increases over time,
A)net investment is positive.
B)depreciation is less than zero.
C)depreciation exceeds gross investment.
D)gross investment equals depreciation.
E)gross investment is zero.

Question

Quizplus · Accepted Answer

If the economy's capital increases over time, it means that the investment in new capital assets is greater than the depreciation of existing capital assets. This implies that net investment is positive (i.e. gross investment minus depreciation is positive).

If the Economy's Capital Increases Over Time