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- Theories of Economic Developmenteconomics-mcqs › theories-of-economic-development
- Published
- 27 May 2019
- Last updated
- 28 May 2026
According to the Harrod-Domar growth model, economic growth depends on which of the following relationships?
Multiple choice question for Theories of Economic Development. Select an option, then review the explanation below.
Explanation
The Harrod-Domar model states that economic growth is positively correlated with the level of savings and inversely correlated with the capital-output ratio, meaning higher savings boost growth while a higher capital-output ratio reduces it.
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