Which of the following trends have been correctly observed by the economic survey 2017 18 in t...........

Economic Affairs Growth and Indicators

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Which of the following trends have been correctly observed by the economic survey 2017-18 in terms of growth:

additional savings may not necessarily boost growth
competitive exchange rate that boosts investment and growth will elicit its own saving
competitive exchange rates are more important for export-led growth
domestic political economy of exchange rates favors a closed capital account

1,2,3

2 & 3

2,3,4

All

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Explanation:

Rodrik (1998) provides evidence that a competitive exchange rate that boosts investment and growth will elicit its own saving. In other words, there is economic evidence suggesting competitive exchange rates are more important for export-led growth. At the same time, domestic political economy of exchange rates favors an open capital account and a stronger, less competitive exchange rate.