Let capital formation = CF, Production = P, C = consumption. Then CF =_______
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Correct Answer: Option A
Explanation:
Capital Formation or capital accumulation refers to increasing a country's stock of real capital. There must be increase in savings and reduction in consumption of consumer goods i.e consumption must be subtracted from production.
Capital Formation or capital accumulation refers to increasing a country's stock of real capital. There must be increase in savings and reduction in consumption of consumer goods i.e consumption must be subtracted from production.