In an open economy, a country can accelerate growth by:

Question

Quizplus · Accepted Answer

By importing investment goods, a country can enhance its production capacity and productivity, leading to higher economic growth. Increasing the trade deficit can provide the country with access to a wider range of investment goods and technologies that are not available domestically, thus boosting growth. Importing consumption goods or exporting investment goods may not necessarily contribute to higher economic growth in an open economy.

In an Open Economy, a Country Can Accelerate Growth By