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What is meant by Capital Formation? What is the difference between Gross Capital Formation and Net Capital Formation? |
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Answer» total stock of the nations increase then it is called as the capital formation.In other ways it is also called as the increase in the net investment.Within the economic or domestic territories of the country, the total expenditure on investment by the production UNIT is called as GROSS domestic capital formation.Initially add the gross domestic capital formation and COST replacement cost, then their DIFFERENCE is EQUAL to the net domestic capital formation. |
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