Write a concise “essay” ononeof the following two questions. Remember that an “essay” requires - at the very least - three parts, consisting of an introduction, which should specify the...

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Title: Understanding the Debt of USA and Current and Capital Account Deficit
Understanding External Debt and Current and Capital Account Deficit
    The external debt of United States was reported to be $26.5 trillion dollars by March 2024, and this accounted to be 91% of the GDP of the country. This reflects the dependency of US on the foreign capital for financing its economy. External debt refers to the obligations to foreign creditors and is reflected through the transactions recorded in the balance of payment under the current and capital accounts. This essay has been written with a purpose to examine the nature of deficits in these accounts.
Current and Capital Accounts in the Balance of Payment
    The economic transactions of a country with other countries across the globe is comprehensively recorded in the balance of payments and this is further bifurcated into:
Current Account: A deficit is noticed in the current account when the imports of a country exceed its exports leading to outflow of...