Where does the money for investment in physical capital come from?

Question

Quizplus · Accepted Answer

The money for investment in physical capital largely comes from the savings of ordinary households. These savings are then allocated to businesses for their investments in physical capital, such as equipment, buildings, and infrastructure. Therefore, choice A is the correct option. B is incorrect because government subsidies are not a primary source of funding for physical capital investment. C is partially correct, but it is only one source of funding and not the largest one. D is incorrect because foreign countries typically do not donate funds for physical capital investment in other countries.

Where Does the Money for Investment in Physical Capital Come