Question

Expenditures for consumer goods and services $4,565

Exports $740
Government purchases of goods and services $1,465
Social Security taxes $510
Net investment $225
Indirect business taxes $520
Imports $825
Gross investment $865
Corporate income taxes $185
Personal income taxes $750
Corporate retained earnings $45
Net foreign factor income $20
Government transfer payments to households $690
Net interest payments to households $0
On the basis of Table, depreciation is
a. $640 billion.
b. $50 billion.
c. $85 billion.
d. $690 billion.

Answer 1

a. $640 billion.

Step-by-step explanation:

Net investment = $225

Gross investment = $865

Depreciation = Gross investment - Net investment = $865 - $225 = $640

Therefore, on the basis of Table, depreciation is a. $640 billion.