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Net investment is equal to
A) GDP minus depreciation.
B) depreciation.
C) gross investment minus taxes.
D) gross investment minus depreciation.
Net Investment
The total amount spent on new capital assets minus the depreciation on existing capital assets.
Gross Investment
The total amount of investment in the economy, including investments in the replacement and acquisition of capital assets before accounting for depreciation.
Depreciation
Depreciation is the accounting process of allocating the cost of a tangible or physical asset over its useful life, reflecting the loss of value over time.
- Acquire understanding of net investment, including its association with gross investment and depreciation.
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Learning Objectives
- Acquire understanding of net investment, including its association with gross investment and depreciation.
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