Since the early 1970s,developed countries such as Great Britain and the United States have financed their trade deficits by:
A) borrowing from the World Bank.
B) borrowing private money.
C) selling their gold reserves.
D) drawing on grants from the International Monetary Fund.
E) increasing their imports.

Question

Quizplus · Accepted Answer

Developed countries such as Great Britain and the United States have financed their trade deficits by borrowing private money. This means they borrow funds from private investors and institutions such as banks or issue bonds to finance their trade deficits. This has been a common practice since the early 1970s as it allows governments to stimulate economic growth by importing more goods than they export. However, it can also lead to high levels of debt and economic instability if not managed properly.

Since the Early 1970s,developed Countries Such as Great Britain and the United