The Harrod-Domar growth model suggests that growth is
directly related to savings and inversely related to the capital/output ratio.
directly related to the capital/output ratio and inversely related to savings.
indirectly related to savings and the capital/output ratio.
directly related to savings and the capital/output ratio.
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The Harrod–Domar model is a Keynesian model of economic growth. It is used in development economics to explain an economy's growth rate in terms of the level of saving and of capital. It suggests that there is no natural reason for an economy to have balanced growth.
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