Re: Jnu 2005

Posted by Anjali on Mar 24, 2014; 4:04am
URL: http://discussion-forum.276.s1.nabble.com/Jnu-2005-tp7585391p7585406.html

Hi arushi !
Well why can we use the standard harod domar equation here , which is
g+n+dep of capital ( here 0 ,I suppose ) = s/Q
Now s= S/Y , and q= K /Y
why can't we equate s ( saving rate ) with investment rate ( 20 % ) ?
Your answer could be right , however I did not get what you have explained here. Please guide.