Question

Choice
The bulk of the investment in any country in a given year
Select one:
O a.is replacement investments
O b.is net investments in fixed capital, residences and inventories
c. None of the above
​

Answer 1

Answer:

b) is the right answer of the que

Answer 2

Answer:

The correct answer to the given question is option a, that is, replacement investments.

Explanation:

The bulk of the investment is replacement investment for any country in a given year.

Throughout the year, in any country for say taken into consideration, loses output in form of wear and tear.

• Wear and tear to be further explained is through process of decaying and scrapping.
• Those investments must be replaced to maintain the output.
• such an actual purchase to maintain the capacity of output for equipment is termed as Replacement investment.
• It is though not equivalent to deterioration or depreciation.

Thereby, bulk of investment is replacement investment in a given year for any country.