New growth theorists believe that
A)wealth creation comes from innovation.
B)wealth creation comes from saving.
C)wealth creation is due to capital spending and not research and development spending since much research and development spending fails to produce an invention.
D)inventions spread very rapidly, thereby curtailing the need for more innovations.

Question

Quizplus · Accepted Answer

New growth theorists believe that innovation is the key to creating wealth. This is because new ideas and inventions can create new products and industries, leading to economic growth. Saving and capital spending are still important, but they are seen as complementary factors to innovation. The rapid spread of inventions also does not necessarily mean there is no need for more innovation, as there can always be room for improvement and new ideas.

New Growth Theorists Believe That