Net capital inflow, FN. is FN =dD and Basic transfer, BT, is BT=dD-D= (d-r)D Where d...

 

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Net capital inflow, FN. is FN =dD and Basic transfer, BT, is BT=dD-D= (d-r)D Where d is percent increase in total debt D is total debt r is the average interest rate What will cause BT to become negative? Net capital inflow, FN. is FN =dD and Basic transfer, BT, is BT=dD-D= (d-r)D Where d is percent increase in total debt D is total debt r is the average interest rate What will cause BT to become negative?

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When nations borrow money at high interest rates from external sources BT ... View the full answer