7.)Which of the following statements is true? a.)Net private domestic investment
ID: 1102108 • Letter: 7
Question
7.)Which of the following statements is true?
a.)Net private domestic investment less depreciation is gross private domestic investment.
b.)Gross private domestic investment divided by depreciation is net private domestic investment.
c.)Gross private domestic investment less depreciation is net private domestic investment.
d.)Gross private domestic investment plus depreciation is net private domestic investment.
If you were to determine net domestic product (NDP) through the expenditures approach, the correct measure of investment spending to use is
a.)gross private domestic investment because it excludes depreciation.
b.)net private domestic investment because it excludes depreciation.
c.)net private domestic investment because it includes depreciation.
d.)gross private domestic investment because it includes depreciation.
Explanation / Answer
7.c.)Gross private domestic investment less depreciation is net private domestic investment.
8.b.)net private domestic investment because it excludes depreciation.