What is the relationship between net borrower, net lender, debtor nation, and creditor nation?

What will be an ideal response?


If a nation is currently borrowing from the world more than it is lending to the world, the nation is a net borrower. If a nation is currently lending more to the world more than it is borrowing from the world, the nation is a net lender. If during its entire history a nation has borrowed more than it has lent, the nation is a debtor nation. If during its entire history a nation has lent more than it has borrowed, the nation is a creditor nation. The distinction between borrowing or lending and being a debtor or creditor deals is the distinction between a flow and a stock. A nation that is a net borrower is increasing its debt (or decreasing its assets). The net borrowing is the flow that adds to the stock of debt (or decreases the stock of assets). A nation that is a net lender is increasing its assets (or decreasing its debt). The net lending is the flow that adds to the stock of assets (or decreases the stock of debt).

Economics

You might also like to view...

The government makes all economic decisions in a market economy

Indicate whether the statement is true or false

Economics

Violent labor-management conflicts of the late 1800s included all of the following except

a. the Haymarket Square riot b. the Carnegie Homestead Works incident c. the Pullman strike d. the Credit Mobilier scandal

Economics

When unemployment is below the natural rate,

A. frictional unemployment increases. B. inflation slows. C. structural unemployment decreases. D. the inflation rate increases.

Economics

Out of all advertising spending, the largest share goes to

A) television ads. B) false advertising. C) direct marketing. D) newspaper ads.

Economics