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
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
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 17SCQ: For each of the following, indicate which type of government spending would justify a budget deficit...
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Question
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 |
|
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 |
|
E. |
None of the Above |
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