Under which of the following circumstances would it most likely be beneficial for a government to be a large borrower of foreign capital ? A.Never, as there is no economic benefit to a country from running Trade Deficits. B.If the inflow of Capital is absorbed/offset by greater government borrowing. C.When borrowing larger amounts is based on unconventional/heterodox economic viewpoints. D.When those funds are invested in sectors that sustain Economic Growth over time. E.None of the Above

Economic growth can be characterized as the increment or improvement in the inflation-changed market…

Answered: Under which of the following…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Under which of the following circumstances would it most likely be beneficial for a government to be a large borrower of foreign capital ?

	A.	Never, as there is no economic benefit to a country from running Trade Deficits.
	B.	If the inflow of Capital is absorbed/offset by greater government borrowing.
	C.	When borrowing larger amounts is based on unconventional/heterodox economic viewpoints.
	D.	When those funds are invested in sectors that sustain Economic Growth over time.
	E.	None of the Above

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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