CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

Which growth theory predicts that a poorer a country is the faster it will grow?
A. classical growth theory.
B. neoclassical growth theory.
C. endogenous growth theory.
Explanation: This is one problem with the neoclassical growth theory. The theory predicts that countries with a low level of capital would have a higher marginal product of capital because of diminishing returns.

User Contributed Comments 0

You need to log in first to add your comment.