General Knowledge · Economics
What does the term 'capital formation' primarily refer to in macroeconomics?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Increase in financial savings inside commercial banks
- 2Growth in physical production capacity through investment✓
- 3Expansion of consumer credit lines
- 4Decrease in foreign direct investment
Correct answer
Growth in physical production capacity through investment
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