Which of the following is not an interpretation of the golden rule of accumulation?
A. ‘Invest your profits, consume your wages.’
B. The share of profit in output is equal to the ratio of investment to output.
C. Saving ratio should be equal to the elasticity of output with respect to capital.
D. None of the above.
Answer:D
Which of the following is not an interpretation of the golden rule of accumulation?
A. ‘Invest your profits, consume your wages.’ B. The share of profit in output is equal to the ratio of investment to output. C. Saving ratio should be equal to the elasticity of output with respect to capital. D. None of the above.