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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is 1. Gross Investment 2. Net Investment -Nike has 3 Old Machines, but then replaces them with 5 New Machines. What’s the Gross and Net?

Author: eric_galvao



Answer:

1. Gross Investment will be ALL Investment Spending 2. Net Investment will only have Investments that Increase the Productive Capacity. -For Nike, the Gross would be 5 Machines, while the Net would be 2 Machines [difference of 5 and 3]


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