A country that borrows more from the rest of the world than it lends to it in a year is called a
, and a country that lends more to the rest of the world than it borrows from it in a year is called a .

Question

Quizplus · Accepted Answer

A country that borrows more than it lends is a net borrower, while a country that lends more than it borrows is a net lender. This is because the difference between what a country borrows and what it lends is its net borrowing or net lending position. Option B is incorrect because it does not specify whether the country is a net borrower or net lender. Option C is incorrect because it refers to trade rather than borrowing and lending. Option D is incorrect because it uses the term "gross" which is not necessary when referring to net borrowing and lending.

A Country That Borrows More from the Rest of the World