The National Development Plan (NDP) looks at building economiccapacity.Explain, with reference to the NDP, why gross fixed capital formation(investment) is important to building economic capacity in theeconomy, and whether or not the rates that are shown in the tableabove are sufficient to meet the requirements of the NDP. The following table was extracted from the June 2019 South African Reserve Bank bulletin.Real Gross fixed capital formationQtr to Qtr percentage change at seasonally adjusted annualised ratesSectorQ1 2018Q22018Q3 2018 Q42018YearQ1 2019Government-14.1-4.3-9.0-4.1-4.41.6Private business-6.7-1.32.9-1.42.1-9.8Public Corporations-15.5-13.8-7.9-5.6-12.516.6Total-9.3-3.3-0.7-2.5-1.4-4.5

Gross fixed capital formation is important for the economy,as capital would increase business and…

The following table was extracted from the June 2019 South African Reserve Bank bulletin. Real Gross fixed capital formation Qtr to Qtr percentage change at seasonally adjusted annualised rates Sector Q1 2018 Q2 2018 а3 2018 Q4 2018 Year Q1 2019 Government -14.1 -4.3 -9.0 -4.1 -4.4 1.6 Private business -6.7 -1.3 2.9 -1.4 2.1 -9.8 Public Corporations -15.5 -13.8 -7.9 -5.6 -12.5 16.6 Total -9.3 -3.3 -0.7 -2.5 -1.4 -4.5

The following table was extracted from the June 2019 South African Reserve Bank bulletin. Real Gross fixed capital formation Qtr to Qtr percentage change at seasonally adjusted annualised rates Sector Q1 2018 Q2 2018 а3 2018 Q4 2018 Year Q1 2019 Government -14.1 -4.3 -9.0 -4.1 -4.4 1.6 Private business -6.7 -1.3 2.9 -1.4 2.1 -9.8 Public Corporations -15.5 -13.8 -7.9 -5.6 -12.5 16.6 Total -9.3 -3.3 -0.7 -2.5 -1.4 -4.5

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter26: Monetary Policy

Section: Chapter Questions

Problem 3SQP

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