Author Question: In the Harrod-Domar model, if the savings rate is 20 and the incremental capital output ratio is ... (Read 121 times)

krzymel · **on:** Jun 30, 2018

In the Harrod-Domar model, if the savings rate is 20 and the incremental capital output ratio is five, abstracting from depreciation, what is the implied growth rate?

What will be an ideal response?

Question 2

Currency substitution means

(a) use of money instead of barter.
(b) use of countertrade instead of money.
(c) use of foreign exchange instead of domestic currency.
(d) all of the above.
(e) none of the above.