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.

Question

Quizplus · Accepted Answer

The "new growth theory" emphasizes investing in ideas as the key driver of economic growth. This theory suggests that technological advancements and innovation lead to long-term economic growth, rather than just investing in traditional physical capital like plants and equipment. This means that the key to sustained economic growth is investing in research and development, education, and other areas that promote innovation and creativity.

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