The correct answer is option 1: Capital Formation
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Capital Formation: This involves the process of building up a country's physical and human capital through investments in infrastructure, machinery, technology, and skills. It encourages investment, drives economic growth and development, and boosts consumer demand by creating job opportunities and increasing productivity.
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Inducement to Innovations: While inducing innovations can contribute to economic growth, it is more specific and does not directly address the broad encouragement of investment and consumer demand.
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Debit Cards and Credit Cards: These financial tools facilitate transactions and can affect consumer spending, but they are not directly responsible for encouraging investment and long-term economic growth in the same way as capital formation.
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