Which of the following statements is always true?
A) The increase in investment is equal to the capital stock minus depreciation.
B) Investment equals depreciation.
C) Any change in the capital stock is equal to investment minus depreciation.
D) The capital stock is equal to investment minus depreciation.
E) Investment equals the capital stock minus depreciation.

Question

Quizplus · Accepted Answer

Any change in the capital stock (which includes investment and depreciation) can be calculated by taking the difference between investment and depreciation. Therefore, option C is always true. Options A, B, D, and E are not always true statements.

Which of the Following Statements Is Always True