Question

With reference to the Incremental Capital Output Ratio (ICO

  • R , consider the following statements: 1.ICOR has evolved from the Harrod-Domar Growth Theory and examines the relationship between fresh investments and economic growth. 2.A lower ICOR signifies greater efficiency and productive use of capital. Which of the statements given above is/are not correct?
A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2
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