Question : The difference between gross and net investment is ___________.
Option 1: Change in stock
Option 2: Gross domestic capital formation
Option 3: Depreciation
Option 4: Gross domestic fixed capital formation.
Answer (1)
23rd Jan, 2024
Correct Answer: Depreciation
Solution :
The difference between gross and net investment is depreciation.
Net refers to what is left over from the total after certain deductions are done or depreciation, while gross refers to the total or entire amount of something.
Gross domestic capital formation is a component of expenditure method of calculating national income. It includes gross domestic fixed capital formation and change in stock.
Hence, Option C is correct.
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