MCQOPTIONS
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| 1. |
According to Harrod-Domar model, once the steady growth is interrupted and the economy falls into disequilibrium, cumulative forces tend to perpetuate divergence thereby leading to |
| A. | inflation in the economy |
| B. | either secular deflation or secular inflation |
| C. | Low economic growth rates |
| D. | All of the above |
| Answer» C. Low economic growth rates | |