A nation's use of international capital markets enables it to do all of the following, EXCEPT:
A) provide for a higher level of national defense.
B) smooth consumption over time.
C) build a productive national capital stock.
D) reduce risk through diversification.

Question

Quizplus · Accepted Answer

A nation's use of international capital markets can enable it to do all of the options listed except for providing for a higher level of national defense because international capital markets do not directly fund national defense efforts.

A Nation's Use of International Capital Markets Enables It to Do