Which of the following statements is true Investment expendi

Which of the following statements is true?

Investment expenditures included in the spending approach to GDP are equal to net investment.

Solution

The right answer is option 5.

Explanation: Net Investment = Gross Investment - Depreciation. Therefore, Net investment is lower than gross investment by a significant margin because of the depreciation involved.

Net investment is much lower than gross investment.
Which of the following statements is true? Investment expenditures included in the spending approach to GDP are equal to net investment. SolutionThe right answe

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