After a period of building up debt to foreigners,the associated interest payments mean that ending the foreign debt increase will require

Question

Quizplus · Accepted Answer

Ending the foreign debt increase will require a current account surplus as it means the country would need to earn more from exports and other current account activities than it spends on imports and other current account activities. This surplus in the current account would then be used to pay off the debt and reduce the interest payments.

After a Period of Building Up Debt to Foreigners,the Associated