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Author Question: Assume a closed economy. Suppose the incremental capital-output ratio is 3, and the depreciation ... (Read 122 times)

EAugust

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Assume a closed economy. Suppose the incremental capital-output ratio is 3, and the depreciation rate is 4.
 
  Using the Harrod-Domar growth equation, if the savings rate is 9, what will be the rate of growth? What would the savings rate have to be to achieve 5 growth?

Question 2

Which of the following is an objective of macroeconomic stabilization?
 
  (a) eliminating current account deficits.
  (b) controlling inflation.
  (c) restoring fiscal balance.
  (d) all of the above.



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Bison

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Answer to Question 1

1; 27.

Answer to Question 2

D





 

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