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Depreciation of capital is also known as:

ANet factor income abroad
BConsumption of fixed capital
CAccumulation of inventory
DValue added of the firm
Answer & Solution
Correct answer: B. Consumption of fixed capital
1. Capital wears out during production. 2. Depreciation is consumption of fixed capital. 3. Replacement investment offsets it. _Source: syllabus Introductory Macroeconomics, Chapter 2, National Income Accounting._
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