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Home Questions FVQNTWH253
Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Any new addition to capital stock in an economy is measured by.

Options:

Gross investment

Net investment

Depreciation

Inventory investment

Correct Answer:

Net investment

Explanation:

The correct answer is Option (2) → Net investment

New addition to capital stock in an economy is measured by net investment or new capital formation, which is expressed as Net Investment = Gross investment – Depreciation.

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