The change in the quantity of capital from one period to the next is equal to

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Net investment is the change in the quantity of capital from one period to the next after accounting for depreciation. Gross investment measures the total amount of capital expenditures made in a period, including those needed to replace depreciated capital. Wealth and financial investment are broader concepts that encompass all types of assets, while depreciation represents the reduction in the value of existing capital over time.

The Change in the Quantity of Capital from One Period