Question : Net Investment plus Depreciation gives an estimate of which of the following?
Option 1: Gross Domestic Product
Option 2: Personal income
Option 3: Gross investment
Option 4: Private investment
Correct Answer: Gross investment
Solution : The correct option is a Gross investment .
Net investment plus depreciation provides an estimate of gross investment. In other words, gross investment is equal to the sum of net investment and depreciation, reflecting the total expenditure on acquiring new capital assets and replacing or maintaining existing assets during a specific period. Gross investment is equal to the sum of net investment and depreciation. Gross investment = net investment + depreciation.
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