Which of the following represents the change in the capital stock?
A)consumption minus depreciation
B)output minus depreciation
C)investment minus saving
D)investment minus depreciation

Question

Quizplus · Accepted Answer

The change in the capital stock refers to the net increase or decrease in the amount of physical capital in an economy over a period of time. Investment represents the addition of new capital, while depreciation represents the loss of existing capital. Therefore, the difference between investment and depreciation (option D) represents the change in the capital stock. Option A represents the amount of output that is consumed and not saved, while option B represents the amount of output that remains after depreciation but does not account for investment. Option C represents the difference between the amount of saving (which can be used for investment) and actual investment, but does not account for depreciation.

Which of the Following Represents the Change in the Capital