Question

We became a debtor nation in (LO4) a) 1975 c) 1985 b) 1980 d) 1990

Short answer

The correct answer for the year the country became a debtor nation is 1985 (option c). A debtor nation is a country that has a negative balance of payments, meaning it owes more than it is owed in terms of international trade. This can indicate economic activity and investment in future growth, but consistently high debt levels can lead to instability and pressure on a nation's currency.

Step-by-step solution

Correct Answer

The correct answer for the year the country became a debtor nation is 1985 (option c).

Understanding Debtor Nation

A debtor nation is a country that has a negative balance of payments, or simply, it owes more than it is owed in terms of international trade. Being a debtor nation is not necessarily a bad thing as it often indicates that a country is economically active and investing in future growth. However, a consistently high debt level can lead to economic instability and put pressure on a nation's currency. By understanding the concept of a debtor nation and knowing the correct answer in the given context, you can now analyze similar historical facts and have a better understanding of a country's economic situation during a particular time period.