Matthew Foley UB Person #: 36421984 ECO 416 Assignment 3 1.

. Linear stage models typically attributed to low rates of savings investment and lack the foundations that a modern market economy has, this leads to lack of development. International dependency models of development usually do not attribute to the development of smaller countries and usually impede their progress, usually unintentionally, by drawing labor capital or recourses from them, to name a few. a) 12/5 = 2.4% b) 12/4 = 3% . Improvements in technology bring more economic growth and prosperity. c) 15/5 = 3% .. When savings rates are higher there will be more national investments bringing a higher GDP in the future d) By increasing savings or the rate at which technology advances the economic growth rate can be increased directly. Savings is the largest factor in economic growth as The Harrod-Domar model makes the assumption that the capital is fixed at one point.

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