A country reports exports minus imports of $300 billion, net interest income of $30 billion, net transfers of $50 billion, and no change in official reserves.The country is a

Question

Quizplus · Accepted Answer

The country is a net lender because the sum of exports minus imports, net interest income, and net transfers is positive ($300 billion + $30 billion + $50 billion = $380 billion), indicating that it is lending more to the rest of the world than it is borrowing.

A Country Reports Exports Minus Imports of $300 Billion, Net