- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 9. Economic Growth
- Subject 5. Theories of Growth
CFA Practice Question
According to neoclassical growth theory, if the rate of return exceeds the target rate of return:
B. consumption will increase and economic growth will stop.
C. government spending will decrease and economic growth will slow.
A. saving is sufficient to make capital per hour of labor grow.
B. consumption will increase and economic growth will stop.
C. government spending will decrease and economic growth will slow.
Correct Answer: A
User Contributed Comments 1
| User | Comment |
|---|---|
| quanttrader | more return, more investment |