Neco 2017 Economics Question 49
Practice objective / multiple choice question 49 from the 2017 Neco Economics examination.
According to the Harrod‑Domar model, the annual rate of economic growth \(g\) is given by \( g = \frac{s}{k} \), where \(s\) is the savings rate (as a decimal) and \(k\) is the capital‑output ratio. Country X has \(k = 3.5\) and currently saves 20% of its GDP, which equals \u20A5 500 billion. The government wishes to raise the growth rate to 6% per year. What minimum savings rate (as a percentage) must the country achieve to meet this target?
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About This Question
This is Neco 2017 Economics Question 49. It is one of the objective questions from the 2017 Neco Economics examination.
Difficulty level: Hard .
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