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Check to see if my answers are correct. If not please provide reasoning
Question 2 Answer saved Points out of 1.0 P Flag question The Harrod-Domar model predicts that more investment will lead to p
Question 3 Answer saved Points out of 1.0 Chinas PPP GDP p.c. is currently growing at around 7% per year. Analysts note that
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Answer #1

Your Second answer seems right.

But your first answer feels wrong as:

In Harrod- Domar model, it assumes constant return to Capital, so it do accounts returns to Capital. What it lacks is Production of new capital requires savings and investment today. As Developing countries find it difficult to increase saving. Increasing savings ratios may be inappropriate when you are struggling to get enough food to eat. This was a major reason of why the developing countries criticized HD model.

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Check to see if my answers are correct. If not please provide reasoning Question 2 Answer...
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