- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics
- Reading 11. Economic Growth and the Investment Decision
- Subject 5. Theories of Growth
CFA Practice Question
The neoclassical model says a higher saving rate:
A. permanently raises the rate of growth in the economy.
B. brings a higher level of per capita output even in the long run.
C. does not increase the level of labor productivity.
Explanation: Although a higher saving rate does not permanently raise the growth rate of output, it will increase level of per capital output (labor productivity).
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