Gross domestic capital formation is always greater than gross fixed capital formation
True or False with Reasons:
Gross domestic capital formation is always greater than gross fixed capital formation.
Anurag Pathak Changed status to publish December 11, 2023
False,
Gross Domestic Capital Formation can be less than Gross Fixed Capital Formation if a change in stock is negative, i.e., when opening stock is more than closing stock.
Explanation:-
Gross Domestic Capital Formation = Gross Fixed Capital Formation + Change in Stock (closing stock – opening stock)
If change in stock is negative, gross domestic capital formation will be less than the gross fixed capital formation.
Anurag Pathak Changed status to publish December 11, 2023
