External financing allows the economy to consume beyond its production possibilities temporarily.

Name: External financing allows the economy to consume beyond its production possibilities temporarily.
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Question

Quizplus · Accepted Answer

External financing, such as foreign investment or borrowing, allows an economy to access resources beyond its current production capabilities. This can lead to increased consumption and economic growth, but it may also lead to debt and eventual financial instability if not managed properly.

External Financing Allows the Economy to Consume Beyond Its Production