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:

Dorr War

A short-lived armed insurrection in Rhode Island during 1842, sparked by demands for broader voting rights and political reforms.

Voting Rights

Legal rights and regulations governing eligibility and access to participate in electoral processes, critical to democratic governance and representation.

Rhode Islanders

Residents or natives of the state of Rhode Island in the United States, known for their unique state history and identity.

Alexis De Tocqueville

A 19th-century French political thinker and historian best known for his works detailing the democratic system of the United States and its societal structures.