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Which of the following statements is correct about Gross Fixed Capital formation (GFCF)?
It refers to the net increase in physical assets.
The World Bank measures capital formation by assessing the change in net savings.
If a country’s rate of capital formation increases, so does the country’s GDP.
All are correct
Gross fixed capital formation (GFCF) is defined as the acquisition (including purchases of new or second-hand assets) and creation of assets by producers for their own use, minus disposals of produced fixed assets.
By: Cammy Garg ProfileResourcesReport error
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