Ask Question
23 March, 13:44

What is capital formation, and how much does it contribute to economic growth?

+4
Answers (1)
  1. 23 March, 16:57
    0
    Capital formation increases investment which effects economic development in two ways. Firstly, it increases the per capita income and enhances the purchasing power which, in turn, creates more effective demand. Secondly, investment leads to an increase in production.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What is capital formation, and how much does it contribute to economic growth? ...” in 📘 History if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers