Author Question: If the incremental capital output ratio is 3 and the ratio of saving to national income is 9, ... (Read 160 times)

jazziefee

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If the incremental capital output ratio is 3 and the ratio of saving to national income is 9, according to the Harrod-Domar model the growth rate of income is
 
  (a) zero.
  (b) 3.
  (c) 6.
  (d) 12.

Question 2

Why might the use of more advanced technology not be a sufficient condition for sustained economic growth?
 
  What will be an ideal response?



al

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Answer to Question 1

B

Answer to Question 2

It may require an inefficiently high capital labor ratio and complementary factors, especially education, may be lacking. Additional points depend on lecture coverage.



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