Question

Regarding capital formation which of the following is correct? Statement 1 : High capital output ratio indicates efficient use of capital Statement 2 : Net capital formation adds depreciation from total investments Statement 3 : Capital formation reflects the productivity of capital in the economy

A Statement 1 only
B Statement 1 and 2 only
C Statement 1 and 3 only
D Statement 2 and 3 only
E All are correct
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