What does net investment represent?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

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Total investment minus personal investmentTotal investment minus government expenditure on investmentTotal investment after subtracting depreciation of capitalAll of the above

Explanation

Net investment is calculated by deducting the capital consumption allowance (depreciation) from gross investment, reflecting the actual increase in the capital stock.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

What does net investment represent?

Explanation

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