Ask Question + 100. & - Definition & Examples, What is Fiscal Policy? What happens if depreciation exceeds gross investment? Services, Depreciation: Definition, Formula & Examples, Working Scholars® Bringing Tuition-Free College to the Community. O The nation's capital stock is being depleted.

Sciences, Culinary Arts and Personal 2) If depreciation exceeds gross investment, net investment is negative. Login to reply the answers Post; Still have questions? Refer to the table below to answer the questions. If depreciation (consumption of fixed capital) exceeds gross investment, it can be concluded that: a) nominal GDP is rising, but real GDP is declining.

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Factoring in depreciation creates net investment. If gross investment is consistently lower than depreciation, net investment will be negative, indicating that productive capacity is decreasing. - 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)Net investment exceeds depreciation. If depreciation exceeds gross investment, net investment is negative True or false: 1) Net investment equals gross investment minus depreciation.

© 2003-2020 Chegg Inc. All rights reserved. Services, Gross Private Domestic Investment: Definition & Formula, Working Scholars® Bringing Tuition-Free College to the Community. D)The nation's capital stock is being depleted. O Net investment exceeds depreciation. Sciences, Culinary Arts and Personal 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? Get your answers by asking now. All other trademarks and copyrights are the property of their respective owners.

Become a Study.com member to unlock this Depreciation cannot be a negative number.

For example, a company buys a car for $5,000 that has depreciated by $3,000 after three years. what will net investment be? | All rights reserved. Create your account. 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. O The nation's capital stock is being depleted. 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. © copyright 2003-2020 Study.com. Become a Study.com member to unlock this Answer Save. View desktop site.

If depreciation exceeds gross investment, net investment will be?? 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. Gross investment is the amount a company has invested in an asset or business without factoring in depreciation. 1 Answer. Use the following data to answer the question. Favorite Answer. The formula for computing annual straight line... What is the double declining balance method? 3) The expenditure approach to measuring GDP includes firmsʹ spending on … Relevance. Privacy 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?

Relevance. How to find gross private domestic investment. Create your account. b) the economy is importing more than it exports. If depreciation exceeds gross investment, net investment will be??? If depreciation exceeds gross investment, O The difference between GDP and NDP is smaller than gross investment. what will net investment be? If depreciation exceeds gross investment: A. the economy's stock of capital may be either growing or shrinking. 1 Answer. That can be a problem down the road. B. the economy's stock of capital is shrinking. O Gross investment is negative. Zero. If depreciation exceeds gross investment, O The difference between GDP and NDP is smaller than gross investment. - Definition, Effects & Example, Retail Channels: Definition, Types & Examples, Type I & Type II Errors in Hypothesis Testing: Differences & Examples, What is Bank Reconciliation? Answer to: What happens if depreciation exceeds gross investment? The depreciation took away the net value of the investment. 0 0 0. All rights reserved. Terms a. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. C. the economy's stock of capital is growing. answer! 25. Positive. Lv 7. B)Gross investment is negative. O Gross investment is negative. Bill. If depreciation (consumption of fixed capital) exceeds gross investment, it can be concluded that: a) nominal GDP is rising, but real GDP is declining. In year three, the gross investment …

anonymous. 7 years ago. The table below shows the values for several... What is a gross private domestic investment? Lv 4.

O Net investment exceeds depreciation. D. net investment is zero. Our experts can answer your tough homework and study questions.