Q
The Harrod Domar growth model suggests that growth is ?
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A
A. Directly related to savings and inversely related to the capital/output ratio
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B
B. Directly related to the capital/output ratio and inversely related to savings
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C
C. Indirectly related to savings and the capital/output ratio
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D
D. Directly related to savings and the capital/output ratio
Correct Answer:
A. A. Directly related to savings and inversely related to the capital/output ratio