Statement I.We are borrowing from abroad to finance our consumption habits.
Statement II.In the 19^th century we borrowed from abroad to finance capital expansion.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Consumption Habits

Consumption habits refer to the patterns and behaviors of individuals or groups in purchasing and using goods and services.

Capital Expansion

Refers to the growth of a company's capital assets through the addition of property, plants, or equipment intended to increase its productivity and capacity for expansion.