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Explain why the nations would or would not likely

invest similar amounts of capital into capital goods.

User Kathrine
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Answer:

Capital investments are long-term investments; they allow companies to generate revenue for many years by adding or improving production facilities and boosting operational efficiency. Capital goods are important for increasing the long-term productive capacity of the economy. More capital goods reduce consumption in the short-term, but can lead to higher living standards in the economy. Therefore, economies often face a trade-off between consumer goods and capital goods.

Step-by-step explanation:

User Kanishka
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