Question

Without an adequate source of domestic saving, a country can invest by borrowing from abroad. In its international accounts, the borrowing will be reflected in a current account _______, balanced by a financial _______.

Answer 1

Answer:

The borrowing will be reflected in a Current account deficit, balanced by a Financial account surplus

Explanation:

Current account deficit: this is an element of a country's balance of payment, which includes the total borrowings and the interest paid on the debts already received.

Financial account surplus: this is an element of a country's balance of payment which includes its value of its foreign exchange reserves. International accounts shows the wellness of a country's economy.

a good domestic saving and its investment in infrastructure will help to scale up trade and investments within the economy.