Which of the following formulas is correct?
A) Net investment = gross investment + depreciation
B) Net investment = gross investment + capital
C) Net investment = gross investment - depreciation
D) Net investment = gross investment - saving
E) Net investment = gross investment - wealth

Question

Quizplus · Accepted Answer

Net investment is the change in a country's capital stock over a given period, and it is measured by subtracting depreciation from gross investment. Therefore, formula C is correct, which states that net investment is equal to gross investment minus depreciation.

Which of the Following Formulas Is Correct