If depreciation exceeds gross private domestic investment,it can be concluded that

A) the economy is expanding.
B) the economy is importing more than it exports.
C) net investment is negative.
D) nominal GDP is rising but real GDP is declining.

Question

Maganti Nihitha · Accepted Answer

Final Answer : C, Explanation :  Depreciation is a measure of the decrease in the value of an asset over time, and gross private domestic investment is a measure of the amount of investment made in the economy. If depreciation exceeds gross private domestic investment, it means that the economy is not investing enough to replace its existing assets, leading to a decrease in the value of its capital stock. This implies that net investment is negative, which is option C.

If depreciation exceeds gross private domestic investment,it can be concluded that

A) the economy is expanding.
B) the economy is importing more than it exports.
C) net investment is negative.
D) nominal GDP is rising but real GDP is declining.

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Learning Objectives

Related questions

If depreciation exceeds gross private domestic investment,it can be concluded thatA) the economy is expanding.B) the economy is importing more than it exports.C) net investment is negative.D) nominal GDP is rising but real GDP is declining.

Definitions

Learning Objectives

Learning Objectives

Related questions

If depreciation exceeds gross private domestic investment,it can be concluded that

A) the economy is expanding.
B) the economy is importing more than it exports.
C) net investment is negative.
D) nominal GDP is rising but real GDP is declining.