Which of the following statements most correctly describes the process of capital formation?
A)In a highly developed economy,capital formation takes place directly.
B)Capital formation takes place whenever resources are used to produce building,machinery,and other equipment to be used in the production of goods for consumer use.
C)The direct process of capital formation can work only if the proper legal instruments and financial intermediaries exist.
D)All of the above statements are correct.

Question

Quizplus · Accepted Answer

Capital formation involves using resources to produce capital goods like buildings and machinery, which are then used to produce consumer goods.

Which of the Following Statements Most Correctly Describes the Process