Gross investment is ______Multiple choice question.the wear and tear on private investmentthe total amount of new capital goods plus replacement goodsthe total amount of new capital goods, both replacement and additional capitalthe total amount of new capital goods less replacement goods
Question
Gross investment is ______Multiple choice question.the wear and tear on private investmentthe total amount of new capital goods plus replacement goodsthe total amount of new capital goods, both replacement and additional capitalthe total amount of new capital goods less replacement goods
Solution
The correct answer is: the total amount of new capital goods plus replacement goods.
Gross investment refers to the total amount spent on purchasing new capital and also on replacing depreciated capital. It is the total investment made by a company or an individual without accounting for depreciation.
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