What would gross savings rate have to be to achieve growth, Microeconomics

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What would gross savings rate have to be to achieve growth

Assume a closed economy, perfectly elastic labor supply, and linear technology. Suppose the incremental capital-output ratio (ICOR) is 3, the depreciation rate is 3%, and the gross savings rate is 10%. Use the Harrod-Domar growth equation to determine the rate of growth. What would the gross savings rate have to be to achieve 5% growth?

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Microeconomics: What would gross savings rate have to be to achieve growth

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Microeconomics: What would gross savings rate have to be to achieve growth

Reference No:- TGS071370

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Capital expenditures or revenue expenditures

Q : At which level of production starts stage two of production

Q : What was total standard cost for variable overhead for may

Q : Protection is necessary for young industries to grow up

Q : What would gross savings rate have to be to achieve growth

Q : What is the dividend yield

Q : Draw budget constraint and identify optimal combination

Q : Signing bonus at the date of employment

Q : What was total sales price of tvs sold by ed

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: What would gross savings rate have to be to achieve growth

Reference No:- TGS071370

Recent Questions Asked Microeconomics

Q : Capital expenditures or revenue expenditures

Q : At which level of production starts stage two of production

Q : What was total standard cost for variable overhead for may

Q : Protection is necessary for young industries to grow up

Q : What would gross savings rate have to be to achieve growth

Q : What is the dividend yield

Q : Draw budget constraint and identify optimal combination

Q : Signing bonus at the date of employment

Q : What was total sales price of tvs sold by ed

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