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Promoting Economic Growth and Development (id: 4b7385013)

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admin 发表于 2024-7-27 15:09:07 | 显示全部楼层 |阅读模式
本题目来源于试卷: Promoting Economic Growth and Development,类别为 IB经济学

[单选题]
Choose from the situa9zfs(2 x l(ykl 9,iplhtions below whe:an1i;gl 8f gy+eb,bsn it is not appropriate for an economy to take on new debt: ,;nei8gasgfb: l1 by+

I. to service outstanding debts
II. to fund current government expenditures
III. to fund long-term infrastructure

A. I only
B. I and II only
C. I, II, and III
D. II and III only


参考答案:  B


本题详细解析:
B

Statement I: Debt servicing refers to the required regular loan payments needed to cover the interest and principal repayments. Acquiring new debt to service outstanding debt compounds the problem by increasing the total amount of debt owed and the interest payments.

Statement II: Governments cannot sustainably finance their annual expenditures by borrowing money. Funding must ideally come from tax revenues.

Statement III: When a country lacks funding for human and physical capital investments, it may resort to borrowing money to finance long-term investments as they have the potential to increase the country's revenue and income, which could be used to pay off its debts in the future.

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