The United States switched from being a ________ to being a ________ in the early 1980s, when it started to run large current account ________.

Question

Quizplus · Accepted Answer

A net lender country is one that lends more money to other countries than it borrows, while a net borrower country is one that borrows more money than it lends. Therefore, as the United States started to run large current account deficits in the early 1980s, it switched from being a net lender to being a net borrower country. Option A is incorrect because it depicts a scenario opposite to what happened. Option B is incorrect because it describes what happened after the early 1980s. Option D is incorrect because it depicts the United States' current account position before the early 1980s. Option E is incorrect because it wrongly suggests that the United States became a creditor nation, when in reality, it became a net borrower country.

The United States Switched from Being a ________ to Being