Growth in physical capital depends most directly upon the

Question

Quizplus · Accepted Answer

Physical capital refers to the tangible assets such as machinery, equipment, buildings, and infrastructure that are used to produce goods and services. The amount of physical capital in an economy depends mainly on the level of investment and saving in the economy. When households and firms save more, banks have more funds to lend to businesses that want to invest in physical capital. This drives the growth in physical capital.

Growth in Physical Capital Depends Most Directly Upon the