An economic analyst is comparing the growth prospects of four developing countries using the Harrod–Domar model. The table below shows the savings ratio and the capital-output ratio for each country:
| Country | Savings ratio (sss) | Capital-output ratio (ccc) |
|---|---|---|
| Country A | 25% | 5.0 |
| Country B | 12% | 2.0 |
| Country C | 20% | 4.5 |
| Country D | 18% | 3.6 |
According to the Harrod–Domar model, which country is projected to achieve the highest annual rate of economic growth?
Country A
Country B
Country C
Country D
29 exam-style questions on OCR A Level Economics Development. Each one has a worked solution and a mark scheme showing where the marks go.