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Unformatted text preview: banks and other financial agencies. These collective savings are passed on to businessmen for the purpose of investment. The investors make use of borrowed savings either to purchase or construct new capital goods. Finally, such goods are used in productive activity. T he entire process makes up for capital formation activity. Any flaw or delay in the process reduces final outcome of capital goods....
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This note was uploaded on 11/26/2011 for the course ECONOMIC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10