Th2.2: Gross and Net Investment Flashcards
1
Q
What is gross investment?
A
the amount of investment carried out and ignores the level of depreciaiton
2
Q
What is net investment?
A
gross investment minus the value of depreciation
3
Q
Why is the distinction between gross and net investment important?
A
in the UK depreciation accounts for about 75% of gross investment
4
Q
What is investment?
A
the addition of capital stock to the economy
