Which of the Following Statements Is Correct

question 56

Multiple Choice

Which of the following statements is correct?

• A)Net investment plus depreciation equals gross investment.
• B)Net investment is greater than gross investment.
• C)Gross investment minus financial capital equals net investment.
• D)Net investment plus corporate profits equals gross investment.
• E)Net investment minus depreciation equals gross investment.

---

Definitions:

Voluntary Exchange

An economic transaction where two parties willingly trade goods or services without coercion, each party benefiting from the trade.

Domestic Consumers

Individuals or households within a country that purchase goods and services for personal use.

Tariffs

Taxes imposed on imported goods, used by governments to regulate trade and protect domestic industries.

Foreign Supplier

An overseas entity that provides goods or services to another company or organization within a different country.