Economics · Economics
In the Harrod-Domar model, what does 'warranted growth rate' signify?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The rate of growth that balances savings and investment.
- 2The maximum possible rate of growth in the economy.
- 3The rate of growth at which all planned investments are fully utilized.✓
- 4The rate of growth that guarantees full employment.
Correct answer
The rate of growth at which all planned investments are fully utilized.
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