Which of the following statements is always true?
A)investment equals depreciation.
B)investment equals the capital stock minus depreciation.
C)the capital stock is equal to investment minus depreciation.
D)any change in the capital stock is equal to investment minus depreciation.
E)the increase in investment is equal to the capital stock minus depreciation.

Question

Quizplus · Accepted Answer

Investment refers to the amount of money spent on acquiring or improving capital goods, while depreciation refers to the decrease in value of capital goods over time due to wear and tear or obsolescence. Any change in the capital stock, which represents the total amount of capital goods in an economy, can be expressed as the difference between investment and depreciation. Therefore, option D is always true.

Which of the Following Statements Is Always True