Economy, asked by aishvaryababuraj, 19 days ago

how is capital formation important for economic growth

Answers

Answered by muskanajazmagrayg

Answer:

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.

Explanation:

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Answered by advaithkamjith

Answer:

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.

Explanation:

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