Which of the following models makes the assumption of constant saving-income ratio?
A)kaldor model
B)leontief model
C)harrod-domar model
D)joan robinson model

Question

Quizplus · Accepted Answer

The Harrod-Domar model assumes a constant saving-income ratio, which is a key feature of the model. It suggests that the growth rate of an economy is directly related to the level of savings and inversely related to the capital-output ratio.

Which of the Following Models Makes the Assumption of Constant