Raikkonen’scomment regarding foreign direct investment (FDI) is most consistent with whicheconomic growth model?
  A.Classical
  B. Neoclassical
  C. Endogenous
  C is correct.
  Endogenous growth theory contends thattechnological growth emerges as a result of investment in both physical andhuman capital.Technological progress enhances productivity of both labor andcapital.So in Endogenous growth theory ,increased investment can permanentlyincrease the rate of growth.