Depreciation refers to:

A) the value of leisure goods.
B) changes in exchange rates.
C) income that we earn but do not receive.
D) investment undertaken merely to replace worn-out capital.
E) the effects of government subsidy programs.

Depreciation

The value of capital stock used up to produce GDP or that becomes obsolete during the year

Worn-Out Capital

Assets that have reached the end of their useful life in production processes, often leading to decreased efficiency and increased maintenance costs.