What does gross investment refer to?

Gross investment refers to the total amount of capital created in an economy annually. This includes all expenditures on new capital goods (like machinery, buildings, etc.) as well as increases in inventory levels. It reflects the overall level of investment activity and indicates how much an economy is investing in its productive capacity. Thus, the concept encompasses not just the replacement of worn-out capital, but also additional investment that can lead to economic growth.

Other choices focus on aspects unrelated to the general definition of gross investment; for instance, the first option emphasizes investment in stocks, which is not the same as measuring capital creation in an economy. The third choice discusses consumer goods spending, which is related to consumption rather than investment. Lastly, the fourth option refers to savings, which is a different economic concept altogether from investment.