if depreciation exceeds gross investment

If depreciation (consumption of fixed capital) exceeds gross investment, it can be concluded that: a) nominal GDP is rising, but real GDP is declining.

| what will net investment be?

Answer to: What happens if depreciation exceeds gross investment? 3) The expenditure approach to measuring GDP includes firmsÃŠÂ¹ spending on … © copyright 2003-2020 Study.com. The formula for computing annual straight line... What is the double declining balance method? Factoring in depreciation creates net investment. D. net investment is zero. View desktop site. Positive. Sciences, Culinary Arts and Personal Favorite Answer. If depreciation exceeds gross investment, A)Net investment exceeds depreciation. Services, Depreciation: Definition, Formula & Examples, Working Scholars® Bringing Tuition-Free College to the Community. All rights reserved. - Definition & Examples, Variable Cost: Definition, Formula & Examples, Accrued Expenses & Revenues: Definition & Examples, Introduction to Management: Help and Review, Focus on Personal Finance: Online Textbook Help, TECEP Security Analysis & Portfolio Management: Study Guide & Test Prep, Ohio Assessments for Educators - Business Education (008): Practice & Study Guide, Introduction to Financial Accounting: Certificate Program, Accounting 201: Intermediate Accounting I, Introduction to Business: Homework Help Resource, Financial Accounting: Homework Help Resource, Biological and Biomedical If depreciation exceeds gross investment: A. the economy's stock of capital may be either growing or shrinking. C. the economy's stock of capital is growing. Depreciation cannot be a negative number. B)Gross investment is negative. 0 0 0. How to find gross private domestic investment.

O The nation's capital stock is being depleted. O Net investment exceeds depreciation. answer! If depreciation exceeds gross investment, net investment will be?? D)The nation's capital stock is being depleted. Login to reply the answers Post; Still have questions? Get your answers by asking now. Our experts can answer your tough homework and study questions. O The nation's capital stock is being depleted.

2) If depreciation exceeds gross investment, net investment is negative. Become a Study.com member to unlock this Which statement is correct? If depreciation exceeds gross investment, net investment is negative True or false: 1) Net investment equals gross investment minus depreciation. Gross investment is defined as the total amount spent on goods (i.e., the capital goods) to produce other goods and services (i.e., consumption goods and services), whereas net investment is the increase in productive capital stock. That can be a problem down the road. & Depreciation is calculated by dividing the total value of an asset over the expected useful life of the asset. All other trademarks and copyrights are the property of their respective owners.

B. the economy's stock of capital is shrinking.

7 years ago.

O Gross investment is negative. Ask Question + 100. In year three, the gross investment … Lv 4. - Definition & Examples, What is Fiscal Policy? The table below shows the values for several... What is a gross private domestic investment? Lv 7. What happens if depreciation exceeds gross investment? If a company truck is expected to be used for 5 years, the company would divide its total cost, minus its sale value at the end of its useful life, over five years; and they would expense the yearly value on their financial statements. If depreciation (consumption of fixed capital) exceeds gross investment, it can be concluded that: a) nominal GDP is rising, but real GDP is declining.

Sciences, Culinary Arts and Personal b) the economy is importing more than it exports. Create your account. 7 years ago. Answer Save.

anonymous. 1 Answer. Purchased repair equipment from Andrew Company,... Poisson Distribution: Definition, Formula & Examples, Straight-Line Depreciation: Method, Formula & Example, Crisis Planning & Management in Business: Definition & Elements, Internet Marketing Challenges & Opportunities, Capacity & Facilities Planning: Definition & Objectives, What Is a 360 Degree Appraisal? All rights reserved. - Definition, Effects & Example, Retail Channels: Definition, Types & Examples, Type I & Type II Errors in Hypothesis Testing: Differences & Examples, What is Bank Reconciliation? a. Terms The depreciation took away the net value of the investment.

Gross investment is the amount a company has invested in an asset or business without factoring in depreciation. O Gross investment is negative. If depreciation exceeds gross investment, O The difference between GDP and NDP is smaller than gross investment. Relevance. Create your account.

Therefore, the only way that an asset would continue to depreciate after the period allotted would be if the... Our experts can answer your tough homework and study questions. what will net investment be? If depreciation exceeds gross investment, net investment will be??? Become a Study.com member to unlock this Use the following data to answer the question. © 2003-2020 Chegg Inc. All rights reserved. O Net investment exceeds depreciation.

1 Answer. If gross investment is consistently lower than depreciation, net investment will be negative, indicating that productive capacity is decreasing.

For example, a company buys a car for $5,000 that has depreciated by $3,000 after three years. Answer Save. Refer to the table below to answer the questions. All other trademarks and copyrights are the property of their respective owners. Relevance. Services, Gross Private Domestic Investment: Definition & Formula, Working Scholars® Bringing Tuition-Free College to the Community. - Definition, Purpose, Process & Examples, Statement of Retained Earnings: Definition, Formula & Example, Calculate Ending Inventory: Formula & Explanation, What Is a General Ledger? Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. If depreciation exceeds gross investment, O The difference between GDP and NDP is smaller than gross investment. C)The difference between GDP and NDP is smaller than gross investment. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. Answer true or false: When U.S. national savings... Unanticipated Inflation: Definition & Overview, Full Employment GDP: Definition and Examples, Required Reserve Ratio: Definition & Formula, The Labor Force Participation Rate: Equation & Concept, Gross Domestic Product: Items Excluded from National Production, Business, Government & Society: Interactions and Influences, The Importance of Timing in Fiscal and Monetary Policy Decisions, Defining and Measuring the Unemployment Rate, Sticky Prices: Definition, Theory & Model, Money and Multiplier Effect: Formula and Reserve Ratio, Tax Multiplier Effect: Definition & Formula, The Keynesian Model and the Classical Model of the Economy, National Income Accounting in Economics: Definition, Uses & Equation, Outlines in Excel: How to Collapse Groups of Data in an Outline, Money as a Store of Value: Definition & Overview, Achieving Trade Balance: Trade Deficit and Surplus Examples, The Multiplier Effect and the Simple Spending Multiplier: Definition and Examples, Intro to Excel: Essential Training & Tutorials, MTTC Marketing Education (036): Practice & Study Guide, Introduction to Macroeconomics: Help and Review, College Macroeconomics: Homework Help Resource, Introduction to Management: Help and Review, Holt McDougal Economics - Concepts and Choices: Online Textbook Help, College Macroeconomics: Tutoring Solution, MTTC Economics (007): Practice & Study Guide, Public Speaking Syllabus Resource & Lesson Plans, DSST Business Ethics and Society: Study Guide & Test Prep, Internet & Social Media Marketing: Help & Review, Biological and Biomedical The value of an industrial machine went down 25%... Why does the retained earnings in a tax return... Amber Co. purchases computer equipment for $82,000... What is the straight line depreciation method? Zero.