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Consider Two Countries: Country a and Country B

Question 4

Multiple Choice

Consider two countries: Country A and Country B.Both countries are identical in all aspects except one.In Country B,it is possible for entrepreneurs to borrow money from banks and financial markets,while in Country A,no loans are given for entrepreneurship.Given this information,which of the following statements is likely to be true?


A) Country A is likely to grow faster than Country B.
B) Country B is likely to grow faster than Country A.
C) Both countries are likely to grow at the same rate.
D) Resources are likely to be overconsumed in Country A and underconsumed in Country B.

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