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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Enovid-E 21

A pharmaceutical preparation previously used for contraception.

Ortho-Novum

A brand of oral contraceptive pills used to prevent pregnancy.

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An aqueous solution of formaldehyde gas; commonly used as a disinfectant or preservative in medical laboratories.