Complete the Following Sentence.Foreign Borrowing

question 113

Multiple Choice

Complete the following sentence.Foreign borrowing

• A)always leads to a lower level of consumption in the future for the debtor nation because part of its future GDP is used to pay off the foreign debt.
• B)always leads to a higher level of consumption in the future for the debtor nation because foreign borrowing enables a greater than otherwise possible increase in the nation's capital stock.
• C)could lead to higher consumption levels in the future, if the borrowing is used to finance investment that generates economic growth.
• D)could lead to lower consumption levels in the future, if the borrowing is used for current consumption.
• E)C and D

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Definitions:

Departments

Distinct divisions within a company or organization designated to handle specific tasks or functions, such as sales, marketing, or human resources.

Catering Department

A division within a company or a facility that is responsible for providing food services for events, meetings, and functions.

Profit Center

A segment or division of a company that is directly responsible for generating its own revenue and profit.

Cost Center

A department or function within a business to which costs are charged for accounting purposes, but does not directly generate revenue.