The United States became a net debtor because
A)it ran consistently large current account deficits.
B)it ran consistently large current account surpluses.
C)it lent a lot to people in foreign countries.
D)it provided much foreign aid to other countries.

Question

Quizplus · Accepted Answer

A net debtor means that a country owes more to foreigners than it is owed by them. This is usually caused by running consistent current account deficits, where a country is importing more than it is exporting, and therefore accumulating debt to foreign countries.

The United States Became a Net Debtor Because