Consider the harrod-domar relationship for an economy

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Consider the Harrod-Domar relationship for an economy:

g= (s/v)-d

Assume that the depreciation rate is 0. A country can only save 15 percent but wants to grow 15 percent. Assuming the ICOR is 3, the gap of ____ should be provided by foreign aid.

a. 10 percent

b. 0 percent

c. 5 percent

d. We cannot say without more information

Reference no: EM13983872

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