What will likely be the impact of large scale inflow of foreign capital in india on ppc and why?
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PPC will shift rightward because resources in the economy increase due to inflow of foreign capital. it raises the production capacity ...
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Explanation:
The likely impact of the large scale inflow of foreign capital (Money) in India on Production Possibilities Curve (PPC) is an increase in the availability of resources, thus India will experience a PPC growth. This is because the financial capital acquired will be used in the production of things that can be used to make goods and services. For PPC to expand the financial capital has to be used appropriately which will result in economic growth in India. The capital could be used in expansion infrastructural developments, build factories, and improve service delivery to the people.
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