The "new growth theory" of economic growth emphasizes the importance of
A)Investing in new plants and equipment.
B)Household saving as a source of funds for investment.
C)Investing in ideas.
D)Borrowing funds for investment from foreign sources.

Question

Quizplus · Accepted Answer

The "new growth theory" emphasizes the importance of investing in ideas, such as research and development, education, and innovation, as a source of economic growth. This is in contrast to older theories that focused on traditional inputs like capital and labor.

The "New Growth Theory" of Economic Growth Emphasizes the Importance