a. negative
b. positive
c. zero
d. equal to depreciation
2006-07-09 18:15:50 · 6 answers · asked by Rekha S 1 in Social Science ➔ Economics
c
2006-07-09 18:18:10 · answer #1 · answered by John m 2 · 0⤊ 0⤋
Gross fixed investment minus net fixed investment is equal the depreciation.
Gross fixed investment is always greater or less than net fixed investment.
Therefore, if gross fixed investment equals depreciation,
depreciation is also always greater or less than net fixed investment.
Therefore, the answer is either a, b, c, or d. not really sure.
2006-07-09 19:08:32 · answer #2 · answered by AnswerBlaster 2 · 0⤊ 1⤋
I won't answer your test question for you, but consider this:
Gross fixed investment is incremental to the stock of capital, while depreciation is decremental. In a closed system, these are generally considered to be the only flows to and from the stock of capital.
Your answer will therefore be different if other flows are concerned, such as technology, repair, obsolesence, theft, vandalism, war or seizure.
2006-07-10 06:08:33 · answer #3 · answered by Veritatum17 6 · 0⤊ 1⤋
GFI= NFI - Dep
since GFI = Dep.; net fixed invt is zero. answer C
2006-07-10 20:35:40 · answer #4 · answered by Aaditya 1 · 0⤊ 0⤋
d
2006-07-09 19:05:35 · answer #5 · answered by sbacharya_61@yahoo.com 2 · 0⤊ 0⤋
a.
2006-07-09 18:20:57 · answer #6 · answered by Vantage 2 · 0⤊ 0⤋