What is capital accumulation, Business Economics

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What is capital accumulation?

Capital accumulation simply implies an increase into a country is stock or amount of capital over time. It requires net investment, which is investment over and above which required to replace worn out capital or deprecation.

Further producer goods mean economic growth along with higher output employment and income. The savings ratio(s) is the proportion of income which is saved. A savings ratio of ten percent implies 10pis saved for each pound of income.

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