The Most Important Policy Implication of the Classical Growth Model

question 112

Multiple Choice

The most important policy implication of the Classical growth model is that:

• A)policies to slow population growth will accelerate economic growth.
• B)policies to stimulate technological development will stimulate economic growth.
• C)policies to stimulate saving and investment will stimulate economic growth.
• D)budget deficits will stimulate economic growth.

---

Definitions:

Opportunity Costs

The cost of choosing one option instead of the next best alternative, representing the benefits missed out on.

Certainty Equivalent Factors

The adjusted value of risky outcomes to reflect the investor's risk aversion, often used in capital budgeting.

Life Span

The duration or length of life of an organism, object, or system, often used in the context of product life cycles or human longevity.

Portfolio

In finance, a collection of investments.