If depreciation exceeds gross private domestic investment,it can be concluded that

Question

Quizplus · Accepted Answer

Depreciation is a measure of the decrease in the value of an asset over time, and gross private domestic investment is a measure of the amount of investment made in the economy. If depreciation exceeds gross private domestic investment, it means that the economy is not investing enough to replace its existing assets, leading to a decrease in the value of its capital stock. This implies that net investment is negative, which is option C.

If Depreciation Exceeds Gross Private Domestic Investment,it Can Be Concluded