What can be deducted from the total capital creation to get net capital creation?
Answers
Explanation:
The transfer of capital from individuals, organizations, or governments for business use after deductions for depreciation. For example, a widget company experiences capital formation when people buy widgets. It calculates its net capital formation by deducting the depreciation on its widget-manufacturing equipment.
Answer:
Net Domestic Capital Formation (NDCF):
NDCF is equal to the difference of the sum of GDCF and current replacement cost (CRC), also known by different names as consumption of fixed capital, depreciation or capital consumption.
The transfer of capital from individuals, organizations, or governments for business use after deductions for depreciation. For example, a widget company experiences capital formation when people buy widgets. It calculates its net capital formation by deducting the depreciation on its widget-manufacturing equipment.