During 2009, a country's total purchases of newly produced capital goods are $1,000 billion, the country issues $750 billion of stock certificates, and there is $200 billion of depreciation.Net investment in this country equals
A) $800 billion.
B) $1,550 billion.
C) $1,000 billion.
D) $1,750 billion.
E) $550 billion.

Question

Quizplus · Accepted Answer

Net investment is calculated as the difference between gross investment and depreciation. 
Gross investment = total purchases of newly produced capital goods 
= $1,000 billion 
Depreciation = $200 billion 
Net investment = Gross investment - Depreciation 
= $1,000 billion - $200 billion 
= $800 billion

During 2009, a Country's Total Purchases of Newly Produced Capital