What are harrod-domar assumptionsthe h-d harrod-domar model, Ask an Expert

Economics

What are Harrod-Domar assumptions?

The H-D (Harrod-Domar) model assumes as:

• Fixed capital output ratio. Nonetheless, diminishing marginal returns to capital element exist therefore each successive unit of investment is less productive and the capital to output ratio increases.

• Fixed savings ratio

• A closed economy. Within open economy, extra incomes may be utilized to buy imports as well as not saved.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9580067

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