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What is meant by fixed capital? |
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Answer» Thanks? Fixed capital\xa0is\xa0capital\xa0or money that we invest in\xa0fixed assets. In other words, money that we invest in\xa0assets\xa0of a durable nature. These are\xa0assets\xa0that we repeatedly use over a long period. We can also use the term \'fixed\xa0investment\' with the same meaning. Property is an example of a\xa0fixed asset.\xa0In national accounts,\xa0fixed capital\xa0is conventionally defined as the stock of tangible, durable\xa0fixed\xa0assets owned or used by resident enterprises for more than one year. This includes plant, machinery, vehicles and equipment, installations and physical infrastructures, the value of land improvements, and buildings. |
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