Question
Net Investment plus Depreciation gives an estimate of
which of the following?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.
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