Jnu 2007 Question

Posted by Rain Man on May 19, 2012; 4:37pm
URL: http://discussion-forum.276.s1.nabble.com/Jnu-2007-Question-tp7567085.html

Consider a closed controlled economy with unlimited supplier of labor in which the incremental capital output ratio is 4 and the rate of population growth is 1.5 percent per annum . If the economy wants to attain a growth rate of per capita income 6 percent per annum , what must be the savings rate ( in percent ) in the economy ?

a. 24
b. 27.5
c. 30
d. 36

Thanks in advance