Question

Despite being a high saving economy capital formation may not result in significant increase in output due to

Answer 1

Despite being a high saving economy, capital formation may not result in significant increase in output due to a) Weak administrative machine b) lliterac c) High

Answer 2

Despite the fact of it being a high saving economy, capital formation may not lead to the same result of significant increase in output not because of illiteracy, not because of weak administrative machinery, not because of high population density but because of nothing but a high capital output ratio.

In case of high capital output ratio though there is high savings- capital formation may not result in increase in output.