If the Incremental Capital Output Ratio Is 3 and the Ratio

question 4

Multiple Choice

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%.

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Definitions:

Uncollected Balances

The total sum of outstanding payments or loans that have not yet been received by a bank or financial institution.

Sales Decrease

A decline in the volume or value of products or services sold by a company over a specific period.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components that a company will use in the production of the items it will sell, as well as managing the quantities of finished products that are available for sale.

EOQ

Economic Order Quantity, a formula used to determine the optimal order size that minimizes total inventory costs.