What directly results from the balance of investment equaling depreciation in a steady state?

In a steady state, when investment equals depreciation, it implies that the economy is maintaining a constant level of capital stock. This balance means that any new capital created through investment is exactly offset by the capital that wears out or is removed through depreciation. As a result, the overall quantity of capital in the economy does not change, leading to stability in the capital stock.

This steady state is crucial for understanding the dynamics of economic growth models, such as the Solow Growth Model, where a constant capital stock contributes to predictable and stable levels of output and productivity. Consequently, while other factors such as population or consumption can be influenced by various economic conditions, the direct result of investment equating to depreciation is the maintenance of a stable capital stock.