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Question
Capital formation cannot occur unless there is ______.
Options
Investment
Production
Saving
Money
MCQ
Fill in the Blanks
Solution
Capital formation cannot occur unless there is saving.
Explanation:
- Capital formation cannot occur without saving, as saving provides the resources necessary for investment in productive assets.
- Without sufficient savings, funds would not be available to invest in capital goods, which are essential for enhancing production capacity.
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