*A country’s trade in manufactured goods diminished substantially, causing it to lose tax revenue and become a net borrower of foreign funds. For the next two decades, its government used the borrowed funds to upgrade the nation’s waste-water treatment plants and to develop efficient rapid transit systems, creating substantial gainful employment for its workforce. Thereafter, the country began to quickly repay its past borrowing debt. Which of the following most strongly supported this country’s successful economic recovery?
A. ensuring borrowed funds were invested in long-term productive economic assets
B. ensuring that larger borrowing reduced the need for more private savings
C. the creation of a trade deficit through more aggressive buying of imports
D. global policies of low interest rates charged on funds borrowed by governments
Answer:A
*A country’s trade in manufactured goods diminished substantially, causing it to lose tax revenue and become a net borrower of foreign funds. For the next two decades, its government used the borrowed funds to upgrade the nation’s waste-water treatment plants and to develop efficient rapid transit systems, creating substantial gainful employment for its workforce. Thereafter, the country began to quickly repay its past borrowing debt. Which of the following most strongly supported this country’s successful economic recovery?
A. ensuring borrowed funds were invested in long-term productive economic assets B. ensuring that larger borrowing reduced the need for more private savings C. the creation of a trade deficit through more aggressive buying of imports D. global policies of low interest rates charged on funds borrowed by governments
Explanation: Type: Multiple Choice Category: Evaluate