CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

Japan's saving rate rose from an annual average of 19.8 percent for the period 1930-1948 to an annual average of 34 percent in the 1949-1980 period (the highest among the OECD countries). If we use neoclassical model of economic growth model, about half of the observed difference in growth rates between the U.S. and Japan could be explained by the ______ difference between the two countries.
A. capital accumulation.
B. technology.
C. labor productivity.

User Contributed Comments 4

User Comment
malley89 does anyone know why this answer is correct?
Yurik74 Guess noone : ( Have to check books
mazen1967 yes because neeclasical theory says that the growth is due to accumalation of captial but such a growth cannot sustain.
kamcooler savings = investment. investment grows capital. economic output is proportional to input of capital
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