- Messages
- 553
- Reaction score
- 1,080
- Points
- 73
Jazakallah!This is a tough one.
I applied Sherlock Holmes approach on this one. We know for sure that A and D cannot be the answer. If birth rate increases, the income growth per head would fall. If government increases its defence spending, than too the income growth per head would not increase as there would exist unemployment because lack of investment.
B and C are left. Now according to me, imports would have little effect in long run upon the growth of income per head where as if people start to save, there would be more leakage in an economy. As it's developing economy, government would have to invest and this would create job opportunities for individuals. Thus in the long run, it would result in increased income per head.