If a country is a net borrower of financial capital, which of the following is NOT...

If a country is a net borrower of financial capital, which of the following is NOT true about this country?

A) it must have a current account deficit

B) it must have a financial account surplus

C) it’s national saving is lower than its national investment

D) it exports more than it imports, in monetary terms

Solutions

Expert Solution

Option D

As when a country becomes net borrower of financial capital then it imports more than exports.

Rahul Sunny answered 1 year ago

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