New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Net Investment plus Depreciation gives an estimate of

    which of the following?
    A Gross Domestic Product Correct Answer Incorrect Answer
    B Personal income Correct Answer Incorrect Answer
    C Gross investment Correct Answer Incorrect Answer
    D Private investment Correct Answer Incorrect Answer

    Solution

    Gross investment: - • It is the total expenditure on new capital goods during a period. • It includes investment in both fixed assets, such as machinery and equipment, and inventory. • Gross investment is an important component of economic growth, as it increases the productive capacity of the economy. • Net Investment plus Depreciation gives an estimate of Gross investment. • Gross investment can be divided into two categories: public investment and private investment.

    Practice Next

    Relevant for Exams: