The total amount spent on new capital in a time period is equal to
A) net investment.
B) gross investment.
C) depreciation.
D) wealth.

Question

Quizplus · Accepted Answer

Gross investment refers to the total amount spent on new capital in a time period, including both investment in new capital goods and replacement of depreciated capital goods. Net investment is gross investment minus depreciation, and wealth is a broader concept that includes all assets, not just capital. Therefore, the best choice is B - gross investment.

The Total Amount Spent on New Capital in a Time