Every year, the government allocates a part of the budget to develop infrastructure. However, there is low capital formation in the country. What is this called?

Low investment

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High investment

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Capital deficiency

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Capital surplus

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Solution

The correct option is C Capital deficiency
The state of low capital formation is called capital deficiency. It reflects lower production in the nation, resulting in fewer jobs and lower income levels.

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Every year, the government allocates a part of the budget to develop infrastructure. However, there is low capital formation in the country. What is this called?

The correct option is C Capital deficiencyThe state of low capital formation is called capital deficiency. It reflects lower production in the nation, resulting in fewer jobs and lower income levels.

The correct option is C Capital deficiency
The state of low capital formation is called capital deficiency. It reflects lower production in the nation, resulting in fewer jobs and lower income levels.