________ increases the quantity of capital and ________ decreases the quantity of capital.
A) net investment; gross investment
B) investment; depreciation
C) depreciation; net investment
D) investment; saving
E) gross investment; net investment

Question

Quizplus · Accepted Answer

Investment increases the quantity of capital by adding new capital goods, while depreciation decreases the quantity of capital as existing capital goods wear out or become obsolete.

________ Increases the Quantity of Capital and ________ Decreases the Quantity

Increases the Quantity of Capital and Decreases the Quantity