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Read over the questions carefully. There are 30 questions and each question has a value of 3 point Question 15 If depreciatio
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Answer #1

We know that Net Investment is Gross Investment minus the depreciation. Hence if Depreciation is greater than investment then Met investment will be Negative. Hence the correct answer is part b) .

From the above explanation, part a) cannot be the answer as until and unless depreciation is zero, net and gross investment can't be equal.

Part c) can't be the correct answer as Nominal and Real GDP are differentiated on the basis of prices and not on the basis of Depreciation.

Part d) can't be the answer as the economy can't be possibly expanding when depreciation is greater than gross investment.

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