Business, 06.08.2021 23:10, gracieisweird12
The United States has been able to be a large debtor nation without bearing negative debt service cost. Using a current account deficit to finance domestic consumption may result in a burden for a nation’s economy. Economic downturns may reduce the current account deficits. When a country increases its borrowing from abroad, the cost of servicing its debt is expected to decrease. Using a current account deficit to increase domestic investment will never be beneficial for a nation’s economy.
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