A recent survey by India's central bank reported that spending plans by firms on large new projects
Fell by 46 percent in the year ending March 2012, compared with the prior year. This decrease will most directly impact

Question

Quizplus · Accepted Answer

The decrease in spending plans on large new projects will directly impact physical capital growth, as firms may delay or cancel plans to invest in new infrastructure, equipment, and facilities. This can potentially slow down economic growth in the long run, as physical capital is an important driver of productivity and output. The other options (B, C, D) are not directly related to the decrease in spending plans on large new projects.

A Recent Survey by India's Central Bank Reported That Spending