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Domar Model ppt课件内容预览：DOMAR GROWTH MODELThe FrameworkThe basic premises of the Domar model are as follows:1. Any change in the rate of investment flow per year I(t)will produce a dual effect:it will affect the aggregate demand as well as the productive capacity of the economy.2. The demand effect of a change in I(t)operates through the multiplier process,assumed to woDomar Model demand effect of a change in I(t)operates through the multiplier process,assumed to work instantaneously. Thus an increase in I(t)will raise the rate of income flow per year Y(t)by a multiple of the increment in I(t). The multiplier is k=1s,where s stands for the given (constant)marginal propensity to save. On the assumption that I(t)is the only (parametric)expenditure flow that influences the rate of i
课件关键字：Domar Model ,Domar,Model。
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