Net investment refers to
A) the change in the capital stock after subtracting out depreciation.
B) the change in inventories over a 1-year period.
C) the change in investment spending and the change in government expenditures on infrastructure.
D) exports minus imports.

Question

Quizplus · Accepted Answer

Net investment is the change in the capital stock, which is the result of investment spending, after depreciation has been accounted for. Option B refers to changes in inventories, while option C refers to changes in investment and government spending. Option D refers to net exports.

Net Investment Refers to