A country that is a net international debtor initially experiences
A) an augmented savings pool available to finance domestic spending.
B) a higher interest rate, which leads to lower domestic investment.
C) a loss of funds to trading partners overseas.
D) a decrease in its services exports to other countries.

Question

Quizplus · Accepted Answer

A net international debtor country borrows more from abroad than it lends, which increases the pool of available savings for domestic spending and investment.

A Country That Is a Net International Debtor Initially Experiences