Given below are two statements: Statement I: Low-income countries (LICs) and lower-middle-income countries (LMICs) have high prospective growth rates and high marginal productivities of capital. Statement II: They should borrow, and borrow heavily, in order to finance a broad-based increase in investments in human capital (education and health), public infrastructure (power, digital, water, sanitation, transport), and environmental protection. In light of the above statements, choose the most appropriate answer from the options given below:

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Economics · Economy

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Both Statement I and Statement II are correct

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Answer 1

Statement I is incorrect and Statement II is correct

Answer 2

Statement I is correct and Statement II is incorrect

Answer 3

Both Statement I and Statement II are incorrect

Answer 4

Both Statement I and Statement II are correct

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