A nation\'s stock of capital goods will decline when: A) gross investment exceed

Question

A nation's stock of capital goods will decline when: A) gross investment exceeds net investment B) net investment is positive, but still less than grossinvestment C) depreciation exceeds gross investment D) gross investment exceeds depreciation I cant find the answer in the book so please explain why ifpossible. Thanks A nation's stock of capital goods will decline when: A) gross investment exceeds net investment B) net investment is positive, but still less than grossinvestment C) depreciation exceeds gross investment D) gross investment exceeds depreciation I cant find the answer in the book so please explain why ifpossible. Thanks

Explanation / Answer

A nation's stock of capital goods will decline whendepreciation exceeds gross investment.... because the capital goodsis the mean of production and investment without depreciationthe total amount of investment without taking account of the costof depreciation...

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