Under which of the following circumstances would it most likely be beneficial for a government to be a large borrower of foreign capital ?   A. Never, as there is no economic benefit to a country from running Trade Deficits.   B. If the inflow of Capital is absorbed/offset by greater government borrowing.   C. When borrowing larger amounts is based on unconventional/heterodox economic viewpoints.   D. When those funds are invested in sectors that sustain Economic Growth over time.   E. None of the Above

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Economic Growth

It means the rise in the manufacturing levels of a country’s products/services over a while. It is calculated in terms of the real income of the people of the country. When the production of products/services begins, the manufacturers will hire employees, which in turn raises the income of the people and it will also raise the buying power, this eventually leads to the circulation of money that directly helps in the increase in the Gross Domestic Product (GDP). Thus, GDP is calculated by economists to calculate the growth in the country.