The current account BOP deficit will be beneficial for the economy if foreign borrowings are used to finance

Question

Quizplus · Accepted Answer

Real investment in an economy, such as infrastructure, technology, or factories, can enhance productivity, generate employment, and promote sustainable economic growth. When foreign borrowings are used for such investments, they can lead to improvements in the economy's productive capacity, making the current account deficit more manageable in the long term and beneficial for the economy.

The Current Account BOP Deficit Will Be Beneficial for the Economy