Adding to the stock of capital goods may require a temporary reduction of present consumption.

Name: Adding to the stock of capital goods may require a temporary reduction of present consumption.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Investing in capital goods, such as machinery or infrastructure, requires allocating resources towards their production or acquisition rather than immediate consumption. This may result in a temporary reduction of present consumption as resources are diverted towards building or improving capital stock.

Adding to the Stock of Capital Goods May Require a Temporary