A) Total Income
B) Total savings
C) Total demand
D) Total Production
View Answer
B) Total savings
Explanation : Capital formation depends on savings. Saving is that part of national income which is not spent on consumption goods. Thus, if national income remains unchanged more saving implies less consumption. In other words, in order to save more and more people have to curtail their consumption voluntarily.
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(Q) Capital information in an economy depends on ?
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