For the capital stock to grow,production of capital goods must

Question

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The production of capital goods must exceed the depreciation of existing capital for the capital stock to grow. Depreciation represents the wear and tear or obsolescence of existing capital in the economy, and it needs to be replaced by new investment to maintain or increase the stock of capital. A, B, D, and E are not necessarily required for capital stock growth, as they depend on different factors such as price stability, sectoral composition, cyclical fluctuations, or demographic trends.

For the Capital Stock to Grow,production of Capital Goods Must