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Basic Question 5 of 18
Which theory concludes self-sustaining growth can be supported by savings/investments?
B. neoclassical growth theory.
C. endogenous growth Theory.
A. classical growth theory.
B. neoclassical growth theory.
C. endogenous growth Theory.
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 |
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Learning Outcome Statements
compare classical growth theory, neoclassical growth theory, and endogenous growth theory;
explain and evaluate convergence hypotheses;
describe the economic rationale for governments to provide incentives to private investment in technology and knowledge;
CFA® 2025 Level II Curriculum, Volume 1, Module 9.