Gross investment is always greater than the net investment. Defend or refute the given statement with valid argument.

The given statement is refuted.

Gross investment includes addition to capital stock which also includes replacement for the normal wear and tear (depreciation).

Whereas, addition to capital stock in an economy is measured by net investment.

So, in an accounting sense, if the value of depreciation becomes zero, only then gross investment will be equal to net investment.