Foreign Savings

question 5

Multiple Choice

Foreign savings

• A) keep interest rates lower in the United States than they would be otherwise.
• B) keep interest rates higher in the United States than they would be otherwise.
• C) are harmful to the U.S.economy.
• D) only occur through buying Treasury securities.
• E) make it so U.S.firms and governments must undertake their activities at higher costs.

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Definitions:

Revised Estimated

Revised estimated refers to the updated projection or calculation of a particular metric, budget, schedule, or plan based on new information or changes in circumstance.

Salvage Value

The calculated end-life value of an asset after its utility period is over.

Double-Declining-Balance Method

An accelerated method of depreciation that doubles the regular depreciation rate, reducing the asset’s book value more quickly in the early years of its life.

Depreciation Expense

Assigning the cost of a material asset over the duration of its usefulness.