CFA Practice Question

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CFA Practice Question

Sources of ongoing economic growth include all of the following activities except ______.

A. investment in new capital
B. current consumption
C. discovery of new technologies
D. investment in human capital
Correct Answer: B

User Contributed Comments 3

User Comment
Gooner7 In the real world this is completely wrong, as evidenced by the current economy. Current consumption would evidence that there is a demand for current goods, which would trigger additional spending in capex projects, which would create jobs, and thereby continue to increase current consumption. but whatever
hks101 Sources of ONGOING economic growth, which means sustainable growth. Consumption can't promote growth forever as there's finite of income. When that runs out you can borrow but you can only leverage for so long.
CFAJ so are you saying that we could continue growing the economy if consumption went down?
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