A nation running a current account deficit must either be ________ its indebtedness to foreigners in the private sector or ________ its indebtedness to foreign governments.

Question

Quizplus · Accepted Answer

A current account deficit means a country is importing more goods, services, and capital than it is exporting. To finance this deficit, the country must either increase its borrowing from foreign entities (private or government), leading to an increase in its indebtedness.

A Nation Running a Current Account Deficit Must Either Be