The difference between the amount of capital at the beginning of a year and the amount of capital at the end of the year is equal to
A) net investment.
B) capital consumption.
C) gross investment.
D) financial consumption.
E) depreciation.

Question

Quizplus · Accepted Answer

Net investment is the difference between the capital at the beginning and the end of the year, accounting for depreciation.

The Difference Between the Amount of Capital at the Beginning