Gross investment minus depreciation equals
A) GNP.
B) net investment.
C) change in business inventories.
D) GDP.

Question

Quizplus · Accepted Answer

Gross investment represents the total amount invested in capital goods, while depreciation represents the decrease in the value of existing capital goods. Therefore, subtracting depreciation from gross investment results in net investment – the amount of investment that increases the stock of capital goods.

Gross Investment Minus Depreciation Equals