An increase in the net debtor status of the United States will serve to reduce the well-being of U.S.citizens because

Question

Quizplus · Accepted Answer

An increase in the net debtor status means the country owes more to foreigners than it is owed. To reduce this debt, the U.S. would need to either decrease imports (A) to reduce the outflow of funds or increase exports (C) to bring more funds into the country, both of which can help balance the international payments and reduce the net debtor status. Exporting gold (B) is not a contemporary mechanism for settling international debts.

An Increase in the Net Debtor Status of the United