The main reason for low growth rate in India, inspite of high rate of savings and capital formation is :
The main reason for low growth rate in India, inspite of high rate of savings and capital formation is :
(a) high birth rate
(b) low level of foreign and
(c) low capital output ratio
(d) high capital output ratio
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(d) The capital outpur ratio is used to produce an output over a period of time. This ratio has a tendency to be high when capital is cheap as compared to other inputs. For instance, a country with abundant natural resources can use its resources in lieu of capital to boost its output, hence the resulting capital output ratio is low.
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