The capital stock increases whenever
A) net investment is positive.
B) net investment exceeds gross investment.
C) gross investment is negative.
D) gross investment is exceeds net investment.

Question

Quizplus · Accepted Answer

Capital stock increases when there is net investment, which means that the value of new investment added to the economy is greater than the value of capital that has been used up or retired. Therefore, whenever net investment is positive, there is an increase in the capital stock.

The Capital Stock Increases Whenever