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Basic Question 9 of 18

According to neoclassical growth theory, if the rate of return exceeds the target rate of return:

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.

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quanttrader more return, more investment
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I used your notes and passed ... highly recommended!
Lauren

Lauren

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.