The linear stages theory of economic growth fails to recognize that increased investment is
A)both a necessary and a sufficient condition.
B)a necessary but not a sufficient condition.
C)a sufficient but not a necessary condition.
D) neither a necessary nor a sufficient condition.

Question

Quizplus · Accepted Answer

The linear stages theory of economic growth recognizes that increased investment is a necessary condition for economic growth, but it is not sufficient in itself. Factors such as technological advancements, human capital development, and institutional and regulatory frameworks also play important roles in the process of economic development. Therefore, increased investment alone cannot guarantee economic growth, making it a necessary but not a sufficient condition.

The Linear Stages Theory of Economic Growth Fails to Recognize