By participating in international financial markets,a nation can finance its government budget deficit in part by ________,which ________ the link between the nation's deficit and its internal private investment.
A)buying foreign assets,strengthens
B)buying foreign assets,weakens
C)selling assets to foreigners,strengthens
D)selling assets to foreigners,weakens

Question

Quizplus · Accepted Answer

By selling assets to foreigners, a nation can obtain the necessary funds to finance its budget deficit, which weakens the direct link between the nation's deficit and its internal private investment, as the deficit can be financed externally rather than relying solely on domestic savings.

By Participating in International Financial Markets,a Nation Can Finance Its