Question
Economics Question on Economics and economic theories
The economy of INDUS grows at 6% per annum and its investment ratio is 31.2%. What is the capital output ratio of this economy, by the assumptions of the Harrod-Domar model?
A
18.72
B
5.2
C
0.65
D
4.6
Answer
5.2
Explanation
Solution
The correct answer is (B) : 5.2