A small country is an international borrower if its real interest rate without foreign borrowing is ________ the world real interest rate.
A) higher than
B) equal to
C) lower than
D) not comparable to

Question

Quizplus · Accepted Answer

A small country is considered an international borrower if its real interest rate without foreign borrowing is higher than the world real interest rate. This is because, in such a scenario, it can benefit from borrowing at the lower world rate, thereby reducing its cost of borrowing.

A Small Country Is an International Borrower If Its Real