How did foreign debt arise, Business Economics

Assignment Help:

How did foreign debt arise?

Evaluation: Borrowing shows an injection of new resources in the domestic economy and also an opportunity for development.

• When borrowed resources are used to raise productive capacity, in that case the loan and interest repayments can be met through economic growth.

• When the loan is used to finance current account deficits in that case there is no net investment as well as future economic growth. Debt is a burden.


Related Discussions:- How did foreign debt arise

Transactions and precautionary demand, 1.Classify each of the following as ...

1.Classify each of the following as related to the transactions demand, precautionary demand, or asset (speculative) demand for money. Explain: (a) Rodrigo keeps $200 in cash in

Household sector, The prevention of main swings in economic activity can be...

The prevention of main swings in economic activity can be handled most simply by the household sector. Explain why?

General theory of employment , The word of Keynesian -styles A Keynesian co...

The word of Keynesian -styles A Keynesian come about the rules creators on purpose look for to motivate additional than one of the modules of aggregate demand to improvement numbe

Average amount of debt families, The average amount of debt families have i...

The average amount of debt families have is 2.5 times their annual income with a standard deviation 0.75 times their annual income. How much debt does a family have to have (relati

Central banking pre and post financial crisis, Question 1: "Policy can ...

Question 1: "Policy can be conducted by rules or discretion.. The increased role of expectations led to some economists arguing that it would be best to force monetary policy

Present value question, Lottery Ticket Win! You win the lottery and are pr...

Lottery Ticket Win! You win the lottery and are promised by the Lottery Commission $12,000 a year for 6 years, starting next year. Assume the interest rate is 9%. What is the pre

What is culture and human capital, What is culture and human capital? ...

What is culture and human capital? Human capital is the knowledge, experience and skills of employees and can be raised by investing into education, job training and health

Price elasticity, what is price expectation elasticity of demand?

what is price expectation elasticity of demand?

What is the capital-output ratio, What is the capital-output ratio? ...

What is the capital-output ratio? Capital-output ratio: This ratio (k) is the amount of capital required to produce £1 of Gross Domestic Product generated, every year.

ASSIGNMENT, What is a bowed out shape? Why does a production possibilities...

What is a bowed out shape? Why does a production possibilities frontier with increasing opportunity costa have a bowed-out shape?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd