The assumption of a nation's ability to borrow or lend any amount it chooses is:
A) always true.
B) never true.
C) true only for nations with advanced industrial economies and good credit ratings.
D) true for emerging economies due to their high returns on investment.

Question

Quizplus · Accepted Answer

The ability of a nation to borrow or lend any amount it chooses depends on its creditworthiness and economic stability. Advanced industrial economies with good credit ratings are more likely to have access to large amounts of borrowing and lending options. Emerging economies may have high returns on investment, but their credit ratings and economic stability may be uncertain, limiting their ability to borrow or lend any amount they choose. Therefore, option A is not always true, option B is too extreme, and option D does not accurately reflect the factors that determine a nation's borrowing and lending ability. Option C is the best choice as it accounts for the various factors that influence a nation's ability to borrow or lend.

The Assumption of a Nation's Ability to Borrow or Lend