CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

Which theory concludes self-sustaining growth can be supported by savings/investments?

A. classical growth theory.
B. neoclassical growth theory.
C. endogenous growth Theory.
Correct Answer: C

User Contributed Comments 2

User Comment
birdperson need some explanations on these questions
akirchner1 Classical - growth in capital (via spending) is only temporary because an increasing population with limited resources reduces capital growth (this theory never materialized though)
Neoclassic - sees savings/investments as only temporarily increasing the growth rate of the output per worker
Endogenous - sees capital and labor as having to be paid for by savings
You need to log in first to add your comment.