If the Oman is a "net borrower" from abroad,
A) net capital flows must be negative.
B) net foreign investment must be positive.
C) the Oman must be exporting more than it is importing.
D) domestic saving is less than domestic investment.

Question

Quizplus · Accepted Answer

When a country is a "net borrower" from abroad, it means that it is borrowing more from the rest of the world than it is lending to it. This situation occurs when domestic saving is less than domestic investment, as the country needs to borrow funds from abroad to finance the excess of investment over saving.

If the Oman Is a "Net Borrower" from Abroad