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2 February, 21:16

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

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Answers (1)
  1. 3 February, 00:00
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    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.
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