Question

If depreciation exceeds gross investment
A) the economy's stock of capital is growing B) the economy's stock of capital may be either growing or shrinking C) net investment is zero D) the economy's stock of capital is shrinking

Answer 1

Answer:

depreciation exceeds gross investment: the economy's stock of capital is shrinking. The concept of net domestic investment refers to: total investment less the amount of investment goods used up in producing the year's output.