Net private domestic investment is a measure of the change in the nation's capital stock.

Question

Quizplus · Accepted Answer

"Net private domestic investment" refers to the difference between the amount of investment made by private businesses in the domestic economy (e.g. construction of new factories, purchase of new equipment, etc.) and the amount of depreciation (wear and tear) experienced by existing capital stock. Therefore, it is a measure of the change in the nation's capital stock.

Net Private Domestic Investment Is a Measure of the Change