What is the relationship between net borrower, net lender, debtor ...

[codyclark]

What is the relationship between net borrower, net lender, debtor nation, and creditor nation?
 
  What will be an ideal response?

Question 2

If the marginal social benefit of a city's sewage system is less than the marginal social cost, then the city will achieve an efficient use of resources if it ________.
 
  A) decreases the capacity of the sewage system
  B) does not change the capacity of the sewage system
  C) increases the capacity of the sewage system
  D) increases the sewerage charge that the residents pay

[johnharpe]

Answer to Question 1

If a nation is currently borrowing from the world more than it is lending to the world, the nation is a net borrower. If a nation is currently lending more to the world more than it is borrowing from the world, the nation is a net lender. If during its entire history a nation has borrowed more than it has lent, the nation is a debtor nation. If during its entire history a nation has lent more than it has borrowed, the nation is a creditor nation. The distinction between borrowing or lending and being a debtor or creditor deals is the distinction between a flow and a stock. A nation that is a net borrower is increasing its debt (or decreasing its assets). The net borrowing is the flow that adds to the stock of debt (or decreases the stock of assets). A nation that is a net lender is increasing its assets (or decreasing its debt). The net lending is the flow that adds to the stock of assets (or decreases the stock of debt).

Answer to Question 2

A