Increases in capital stock are due to

Question

Quizplus · Accepted Answer

Increases in capital stock are primarily due to investment, which refers to the process of adding to the existing capital stock in an economy. This can include investments in new factories, machines, equipment, and infrastructure. Increasing productivity and labor-saving technology may contribute to the growth of capital stock, but they are not the direct causes of capital formation. Depreciation refers to the decrease in the value of capital goods over time and is not related to the growth of capital stock.

Increases in Capital Stock Are Due to