- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 9. Economic Growth
- Subject 2. Why does Potential Growth Matter to Investors?
CFA Practice Question
Which rate COULD potentially exceed the growth rate of potential GDP in the long run?
B. The growth rate of stock market price performance.
C. The nominal interest rate.
A. The growth rate of earnings.
B. The growth rate of stock market price performance.
C. The nominal interest rate.
Correct Answer: C
The first two rates cannot exceed the growth rate of potential GDP in the long run.
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