In relation to a country's economy,the more a country imports and the worse the current account becomes,the:
A) more the currency increases.
B) lower interest rates fall.
C) lower foreign debt becomes.
D) higher foreign debt becomes.

Question

Quizplus · Accepted Answer

When a country imports more than it exports, it creates a current account deficit, meaning it's spending more money on importing goods and services than it's receiving from exporting them. To finance this deficit, the country needs to borrow from other countries, resulting in an increase in foreign debt. Therefore, the higher the imports and the worse the current account becomes, the higher foreign debt becomes.

In Relation to a Country's Economy,the More a Country Imports