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 ________.
A) borrower; lender
B) importer; exporter
C) net borrower; net lender
D) gross borrower; gross lender

Question

Quizplus · Accepted Answer

A country that borrows more than it lends is a net borrower, indicating a net outflow of capital, while a country that lends more than it borrows is a net lender, indicating a net inflow of capital.

A Country That Borrows More from the Rest of the World