Distinguish between real capital and money capital. Which of the two has greater significance on economic growth?

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Solution

Money capital
Real capital
It refers the the financial capital measured in terms of money. It is provided by the lenders for a price interest. it has less significance on economic growth than real income .
It is not provided by the lenders. It is used for producing goods and services. It has greater significance on economic growth.

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Money capital	Real capital
It refers the the financial capital measured in terms of money. It is provided by the lenders for a price interest. it has less significance on economic growth than real income .	It is not provided by the lenders. It is used for producing goods and services. It has greater significance on economic growth.