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

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Gross private domestic investment is a measure of the amount spent on new capital goods or replacing worn-out capital, while depreciation is the decrease in the value of capital goods due to wear and tear or obsolescence. When gross private domestic investment exceeds depreciation, it means that more capital goods are being produced in the economy than are being worn out. This leads to a positive net investment, which is the increase in the nation's stock of capital.

When Gross Private Domestic Investment Exceeds Depreciation, It Can Be