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Author Question: Assume a closed economy. Suppose the incremental capital-output ratio is 3, and the depreciation ... (Read 126 times)

EAugust

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on: Jun 30, 2018
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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Reply #1 on: Jun 30, 2018
Answer to Question 1

1; 27.

Answer to Question 2

D


EAugust

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Reply #2 on: Jun 30, 2018
Thank you :)


Bison

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Reply #3 on: Jun 30, 2018
Happy to help you


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