Gross Capital Formation will increase if

1. Gross domestic savings increase
2. Gross domestic consumption increases
3. GDP increases

Choose the correct answer using the codes given below:
a) 1 and 2 only
b) Either 1 or 2
c) 3 only
d) None of the above

Ans – [D]

Explanation- Gross capital formation increase means increase in the net investment. None of the statements can certainly say that their increase will result in the increase of the Gross Capital Formation.

So, answer would be (D).