Discussion
The Harrod-Domar Growth Model suggest growth is
Answer: A
In the Harrod-Domar model the growth rate equals the saving rate divided by the capital output ratio, so growth is directly related to savings and inversely related to the capital output ratio. The option that reverses the relationships has the capital output ratio raising growth, and the other two options do not state the direction of both correctly. So the first option is right.
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