Fd,es,cad (1 Viewer)

[jayz]

is it true when CAD rises, Foreign Debt rises, External Stability falls?

AND

does CAD increase with Foreign Debt or the other way around?

 

[AGB]

1. external stability becomes external instability, so therefore, external stability falls

2. works both ways....increases in foreign debt may lead to increases in servicing costs, thus cad rises. conversely, an economy could fall in to the debt trap where it has to borrow money to fund its servicing costs

 

[jayz]

thanks