The United States is called a debtor nation because
A)it has a large current account deficit and is simultaneously funded by foreign investment.
B)it has a large financial account deficit that is used to fund the current account deficit.
C)it has a large balance of payments deficit that is used to fund the current account deficit.
D)U.S.capital outflows are much greater than U.S.capital inflows.

Question

Quizplus · Accepted Answer

A debtor nation is a country that has a current account deficit, meaning it is importing more goods and services than it is exporting. As a result, the country must rely on foreign investment or borrowing to finance its consumption. In the case of the United States, it has a large current account deficit and is simultaneously funded by foreign investment, making it a debtor nation.

The United States Is Called a Debtor Nation Because