In an open economy, investment can be funded externally, possibly leading to:
A) very unstable consumer spending, which may lead to recession.
B) unsustainable debt.
C) foreign control of domestic corporations.
D) a simultaneous increase in income and smooth consumption, with adherence to the long-run budget constraint.

Question

Quizplus · Accepted Answer

The Answer of In an open economy, investment can be funded externally, possibly leading to:
A) very unstable consumer spending, which may lead to recession.
B) unsustainable debt.
C) foreign control of domestic corporations.
D) a simultaneous increase in income and smooth consumption, with adherence to the long-run budget constraint.

In an Open Economy, Investment Can Be Funded Externally, Possibly