Which of the following describes a debtor nation? A) Value of the cou

QUESTION

Which of the following describes a debtor nation?

A) Value of the country’s exports exceeds the value of its imports.
B) Value of the country’s imports exceeds the value of its exports.
C) Value of the country’s imports equals the value of its exports.
D) More money flows into the country from imports, foreign aid, and other sources than flows out.
E) More money flows out of the country from exports, foreign aid, and other expenses than flows in.

ANSWER

Answer: E
Explanation: E) This situation is known as a balance-of-payments deficit or unfavorable balance of payments.