If the economy's capital stock increases over time
A) net investment is positive.
B) depreciation is less than zero.
C) depreciation exceeds gross investment.
D) gross investment equals depreciation.

Question

Quizplus · Accepted Answer

Net investment is positive when the economy's capital stock increases over time, as net investment is calculated by subtracting depreciation from gross investment. If the capital stock is growing, it means that gross investment exceeds depreciation, leading to positive net investment.

If the Economy's Capital Stock Increases Over Time