Consider the harrod-domar relationship for an economyg, Ask an Expert

Economics

Consider the Harrod-Domar relationship for an economy:

g= (s/v)-d

Assume that the depreciation rate is 0. A country can only save 15 percent but wants to grow 15 percent. Assuming the ICOR is 3, the gap of ____ should be provided by foreign aid.

a. 10 percent

b. 0 percent

c. 5 percent

d. We cannot say without more information

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91677630

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