If depreciation (consumption of fixed capital) exceeds domestic investment it can be concluded that?

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1216549

2026-06-01 19:51

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If depreciation exceeds domestic investment, it indicates that the economy is losing more capital stock than it is replacing. This can lead to a decline in productive capacity over time, potentially hindering economic growth. As a result, the overall productivity and competitiveness of the economy may suffer, which could impact employment and income levels.

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