From a national perspective,borrowing permits a country to invest more than it can save and:
A) import more than it can export.
B) engage in the pattern of "infant industry" development.
C) export more than it imports.
D) acquire more prestige in international bond markets.

Question

Quizplus · Accepted Answer

When a country borrows, it can invest more than its current savings allow, which can lead to increased imports. This means that Choice A, "import more than it can export," is the correct answer. Borrowing does not necessarily have a direct impact on infant industry development, exporting more than importing, or international bond market prestige.

From a National Perspective,borrowing Permits a Country to Invest More