Economics A Level: 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?

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?

go kys · Accepted 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]

Economics A Level

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?

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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