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1. Hight level of fiscal deficits 2. High rate of growth of population.
Due to increase in National Income via exports the economy starts to growth.
economic growth is the annual rate of increase in total production or income in the economy
it will not change the rate
The growth rate is the maximum possible rate with only with internal financing. The growth rate of a firm can be calculated with the following equation:internalGrowth rate = (ROA x b) / (1 - ROA x b)Here,ROA = net income / total assetsB (retention rate) = retained earnings / net earnings.Example: The following information is related to firm ABCNet income $180total assets $1,350retained income $100Step # 1:Find the ROA and b (retention rate).ROA = net income / total assetsROA = $180 / $1,350ROA = 0.13 OR 13%b (retention rate) = retained earnings / net income.b = $100/$180b = .55 OR 55%Step # 2:By putting the information in growth formulaGrowth rate = (ROA x b) / (1 - ROA x b)Growth rate = (0.13 x 0.55)/(1 - 0.13 x0.55)Step #3:Solution:Growth rate = (0.13 x 0.55)/(1 - 0.13 x 0.55)= 0.0715 / (1 - 0.0715)= 0.0715 / 0.9285Growth rate = 0.077005924So, growth rate of firm ABC is 7.7%.
1. Hight level of fiscal deficits 2. High rate of growth of population.
The population growth rate of developing countries tends to be higher than that of developed countries. Factors such as high fertility rates, improved healthcare leading to lower mortality rates, and limited access to family planning services contribute to this faster growth in developing nations. This can put pressure on resources and infrastructure in these countries.
Due to increase in National Income via exports the economy starts to growth.
Jaws ration = Income Growth Rate - Expected Growth Rate
When ATO remains constant.
Africa has the highest population growth rate among continents, with many countries experiencing rapid increases in population due to high birth rates and improving healthcare leading to longer life expectancy.
Of the 8 countries with a population growth rate greater than 3%, 7 of them are located in Africa.
yea
economic growth is the annual rate of increase in total production or income in the economy
== == ---- More info at: = List of countries by GDP (real) growth rate = http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_rate
Countries with increasing populations include Nigeria, India, Pakistan, and the Democratic Republic of the Congo. These countries have high birth rates and declining death rates, contributing to their population growth.
it will not change the rate