When a nation spends more on imports and other current account items than it earns, it runs a current account deficit and has to borrow from the rest of the world to finance it. So being a borrower from other countries implies a deficit in the current account.
When nation is a borrower from other countries means:
CUET UG 2023 — Economics Macro
When nation is a borrower from other countries means:
Verified 13 Jul 2026.
Options
- A
Trade surplus
- B
Deficit in current Account
- C
Surplus in current Account
- D
Trade Deficit
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