Gross investment minus depreciation is equal to
A) non-residential investment.
B) gross national product.
C) the value of durable goods.
D) the change in capital stock.

Question

Quizplus · Accepted Answer

Gross investment represents the total addition made to the capital stock in a given period, while depreciation represents the loss of value of the existing capital stock. Gross investment minus depreciation, therefore, gives the net addition made to the capital stock during the period, which is the change in capital stock. Hence, the correct answer is D.

Gross Investment Minus Depreciation Is Equal to