Question

Which form of capital, money capital or real capital, has a greater impact on national output?

Answer 1

• Real capital means capital goods such as properties, machines, plants, etc. Money capital, on the other hand, means money (or cash in hand), which is utilised by the producers to purchase tools, equipment, and other kinds of goods needed for production.
• Real capital has a greater impact on national output as it helps increase production. Money capital helps in purchasing real capital.