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In the long run, the steady state rate of growth of a capitalist economy

Q: Answer-In the long run, the steady state rate of growth of a capitalist economy

In the longrun, the steady state rate of growth of a capitalist economy rises with savings propensity but falls with the incremental capital output ratio. As from Harrod-Domar Model we have, Gy s q .

A Falls with the savings propensity

B Rises with the incremental capital output ratio

C Rises with the savings propensity but falls with the incremental capital output ratio

D Falls with the savings propensity but rises with the incremental capital output ratio

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In the long run, the steady state rate of growth of a capitalist economy

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