- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 9. Economic Growth
- Subject 4. Other Inputs of the Production Function
CFA Practice Question
Sources of ongoing economic growth include all of the following activities except ______.
B. current consumption.
C. discovery of new technologies.
D. investment in human capital.
A. saving and 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? |