The correct answer is: A. flow of expenditure devoted to increased or maintaining of the capital stock
Gross domestic capital formation (GDCF) is the total value of all new fixed assets created within a country’s borders in a given year. It includes expenditure on new construction, machinery and equipment, and intellectual property products. GDCF is a key measure of economic activity, as it reflects the amount of investment that businesses and households are making in the future.
Option B is incorrect because it only includes expenditure on physical assets. GDCF also includes expenditure on intellectual property products, such as patents and trademarks.
Option C is incorrect because it is not a measure of investment. Production exceeding demand would lead to a build-up of inventories, which is not considered to be investment.
Option D is incorrect because it is not a measure of investment. Net addition to stock after depreciation is a measure of the change in the capital stock, not the amount of investment.