The Underlying Assumption of the Harrod-Domar Growth Model Is That

question 18

Multiple Choice

The underlying assumption of the Harrod-Domar growth model is that

• A)the incremental capital-output ratio is given by k = Y/K.
• B)growth is mainly determined by capital accumulation.
• C)growth can be sustained only if agricultural productivity rises.
• D)developing countries save too much and invest too little.

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