What is a "debtor nation?" Is the United States a debtor nation?
What will be an ideal response?
A debtor nation is a country that during its entire history has borrowed more from the rest of the world than it has lent to it. Although the United States was a creditor nation until the 1980s, its borrowing during the 1980s means that today the United States is a debtor nation.
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The problem of special interests financing congressional campaigns and presidential elections is associated with
a. government failure b. public choice theory c. market failure d. negative externalities e. government subsidies
In an open economy with a given level of real interest rates and risk, a decrease in real interest rates abroad will ________ capital inflows and ________ the equilibrium domestic real interest rate.
A. increase; decrease B. decrease; increase C. decrease; decrease D. increase; increase