A net borrower is a country that ________, while a net lender is a country that ________.
A) borrows more than it lends; owes more to foreigners than foreigners owe to it
B) decreases its stock of outstanding foreign debt; lends more than it borrows
C) borrows more than it lends; lends more than it borrows
D) lends more than it borrows; borrows more than it lends

Question

Quizplus · Accepted Answer

A net borrower is a country that borrows more than it lends, indicating it is consuming more foreign capital than it is providing. Conversely, a net lender is a country that lends more than it borrows, showing it is supplying more capital to foreigners than it is using.

A Net Borrower Is a Country That ________, While a Net