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If __ is negative, the __ stock has decreased, and vice versa.Multiple choice question.gross investment; capitalcapital; capitalnet investment; capitalcapital; net investment

Question

If __ is negative, the __ stock has decreased, and vice versa.Multiple choice question.gross investment; capitalcapital; capitalnet investment; capitalcapital; net investment

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Solution

If net investment is negative, the capital stock has decreased, and vice versa.

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Which of the following is equal to net investment?Multiple choice question.Gross investment minus depreciationDepreciation plus GDPGDP minus final salesGross investment minus final sales

Gross investment is ______Multiple choice question.the total amount of new capital goods less replacement goodsthe total amount of new capital goods plus replacement goodsthe wear and tear on private investmentthe total amount of new capital goods, both replacement and additional capital

Net investment is ______.Multiple choice question.the total amount of new investment purchasesthe wear and tear on investmentgross investment minus depreciationthe total amount of investment purchases, whether new or previously existing

. Evaluate: “Though net investment can be positive, negative, or zero, it is impossible for gross investment to be less than zero.” This statement is multiple choice 2correct, because depreciation cannot exceed gross investment.incorrect, because depreciation cannot exceed gross investment.correct, because depreciation cannot be less than zero.incorrect, because net investment is sometimes greater than gross investment.

gross investment is always greater than net investment true or false

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