A country that is a net international debtor initially experiences:

a. an augmented savings pool available to finance domestic spending

b. a higher interest rate, which leads to lower domestic investment

c. a loss of funds to trading partners overseas

d. a decrease in its services exports to other countries

Question

Mara Skinner

Business

1 January, 20:00

A country that is a net international debtor initially experiences:

a. an augmented savings pool available to finance domestic spending

b. a higher interest rate, which leads to lower domestic investment

c. a loss of funds to trading partners overseas

d. a decrease in its services exports to other countries

+3

Answers (1)

Know the Answer?

Paula Navarro · Answer 1

An augmented savings pool available to finance domestic spending

Explanation:

An international debtor borrows moneys from other countries to allow for funding of domestic spending. Their debt to other counties is higher than their investment in foreign countries.