______ Is a Policy in Which States Extract Savings from One

question 67

Short Answer

______ is a policy in which states extract savings from one sector, such as agriculture or labor, to benefit another sector, such as industry.

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Definitions:

Depreciation

The process of allocating the cost of a tangible or intangible asset over its useful life, reflecting the decrease in value of the asset over time due to use, wear and tear, or obsolescence.

Stock Of Capital Goods

The total quantity of physical assets such as machinery, buildings, and equipment that are used to produce goods and services.

Gross Investment

The total amount spent on purchases of new capital assets plus replacement of depreciated assets.

Depreciation

The gradual decrease in the economic value of the capital stock of a firm, nation, or other entity, either through physical wear and tear or through obsolescence.