Gideon2120 Gideon2120
  • 03-01-2020
  • Business
contestada

If Investment Spending does not replace Consumption of Fixed Capital (CFC), then GDP will _________..

Respuesta :

shaikhrabi shaikhrabi
  • 03-01-2020

Answer: Decrease

Explanation:

GDP = gross domestic product. The number of goods and services produced and consumed within a country.

The major components also include investment spending and consumption.

If investment spending does not replace consumption of fixed capital then GDP will fall or decline. Investment spending needs to be replaced by consumption of fixed capital so that the GDP can increase. Which is beneficial for the economy.

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