Although a Net Debtor Country May Initially Benefit from an Inflow

question 8

True/False

Although a net debtor country may initially benefit from an inflow of savings from abroad, over the long run continued borrowing may result in growing dividend payments to foreigners and a drain on the debtor country's economic resources.

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Definitions:

Electroconvulsive therapy

A psychiatric treatment where seizures are electrically induced in patients to provide relief from mental disorders.

Hormone therapy

Treatment that involves the administration of hormones, especially to correct a deficiency or regulate the body's functions, commonly used in conditions like menopause and certain cancers.

Implicit memory

Refers to the unconscious and automatic use of memory, such as skills and procedures learned through experience.

Episodic memory

A kind of durable memory that encompasses the remembrance of particular incidents, circumstances, and personal encounters.