Question

In 1986, the U.S. net international investment position was $136 billion. This means that in 1986...

In 1986, the U.S. net international investment position was $136 billion. This means that in 1986

the United States was a net lender.

the U.S. government made $136 billion in investments abroad.

the United States was a net borrower.

foreign governments made $136 billion in investments in the United States.

Homework Answers

Answer #1

Ans- The united states was a net lendor.

Explanation- Economies with positive international investment position are characterized by higher positions in assets over liabilities and are considered as net creditors or net lendors.

The Net international investment position (NIIP) is the difference between the external financial assets and liabilities of a country.

The International investment position (IIP) of a country is a financial statement of the value and composition of its external financial assets and liabilities. A positive NIIP value indicates that a nation is a creditor nation, while a negative value indicates that it is a debtor nation.

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