Answer Happy

6. (3 points) Suppose that Puerto Rico follows the Harrod-Domar model of economic growth. What will happen to the growth rate of Puerto Rico if a hurricane strikes the island and capital efficiency falls, assuming the savings rate does not change? (a) The growth rate will rise because it now takes more capital to produce one unit of output. (b) The growth rate will decline because it now takes more capital to produce one unit of output. (c) The growth rate will not change because the savings rate does not change. (d) There is not enough information to answer this question.