Incremental Capital Output Ratio – ICOR Definition

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Quotes of the day:

All that glitters is not gold, and things that look warm are often cold!

— Yassine Aumerally

The incremental capital output ratio (ICOR) is a frequently used tool that explains the relationship between the level of investment made in the economy and the consequent increase in GDP. ICOR indicates the additional unit of capital or investment needed to produce an additional unit of output.

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