Gross domestic capital formation is defined as

A. flow of expenditure devoted to increased or maintaining of the capital stock

B. expenditure incurred on physical assets only

C. production exceeding demand

D. net addition to stock after depreciation

Answer: Option D

Solution(By Examveda Team)

Gross domestic capital formation refers to the net increase in the physical asset by the household, public, and government sector within the measurement period of the economy.Dec 26, 2019