Question

Net domestic fixed capital formation +change in stock=?

Answer 1

Difference between Gross Capital Formation and Net Capital ... Net Domestic Capital Formation (NDCF):

Depreciation refers to obsolescence and damage to fixed capital due to wear and tear. Thus, net capital formation is the addition to fixed capital and producers' stock of working capital.

Answer 2

Answer:

Concept:

Change in stock signifies the changes which are made throughout the year. It is opensing stock less the closing stock.

To find:

NDFCF + change in stock

Solution:

When change in stock is added to net domestic fixed capital formation, it gives us the change which was made within the year in the capital formation.

So the answer is Net Domestic Capital formation (NDFC).