In South Africa, only 20.1% of the GDP is devoted to capital investment while in Nigeria, capital investment accounts for 40.2% of the GDP. Which will be the most likely result?

Capital investments result when companies purchase capital goods to regenerate revenue on a long term, as companies invest to increase their product, they hire more employees, so there’s increase in salaries and wages, this drives employment rate up and increase the Gross Domestic product in general.

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chandlermakiya50 chandlermakiya50 · Answer 2 · 2020-03-23T23:08:30+01:00

chandlermakiya50 chandlermakiya50

23-03-2020

Answer:

C

Explanation:

If South Africa only devotes 20.1% of its GDP to capital investment while Nigeria spends 40.2% of its GDP on capital investment, the most likely result will be that Nigeria will have more factories, machinery, and technology than South Africa. None of the other answer choices offer logical results from increased capital investment.

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