Question

lower capital formation leads to lower rate of GDP growth. comment​

Answer 1

Answer:

Explanation:

Answer: The given statement is correct. Lower capital growth influences the GDP growth as the investments get dried up due to lack of capital.

Capital is one of the primary things to start a business and keep people employed, making the GDP to rise.

If capital formation is low, the country’s economy is not good, and there is no much demand for products, and it leads to lower GDP growth.

Answer 2

Answer:

If capital formation is low, the country's economy is not good, and there is no much demand for products, and it leads to lower GDP growth.