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GDP stands for gross domestic product. As its name indicates, GDP measures the production of final goods and services. Borrowing foreign money to buy foreign
by lottin 7y ago
GDP stands for gross domestic product. As its name indicates, GDP measures the production of final goods and services. Borrowing foreign money to buy foreign goods has no effect whatever on a country's level of production and therefore it cannot have any effect on the country's GDP either.
- rumanator 7y ago> Borrowing foreign money to buy foreign goods has no effect whatever on a country's level of production And this is where you're wrong. Borrowing money has a direct and deep impact on ta country's level of production, mainly because that cash is dumped on the economy by spending it on buying goods and services.