If We Look at U

question 29

Multiple Choice

If we look at U.S.net exports over the last four decades, we realize that

• A)the U.S. had consistent large trade deficits in the 1960s
• B)the U.S. never had a trade imbalance in the 1970s
• C)U)S. trade deficits decreased greatly in the early and mid 1980s
• D)the U.S. never had a trade surplus until after the year 2000
• E)U)S. trade deficits decreased substantially between 1997 and 2000

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Definitions:

Notes Payable

Short-term or long-term liabilities recorded when a company borrows money, often in the form of a promissory note.

Common Stock

Common stock represents units of ownership in a corporation, granting shareholders voting rights and potentially dividends, but also placing them last in priority for company assets upon liquidation.

Retained Earnings

Profits not distributed to shareholders as dividends but instead reinvested in the company's core business or used to pay off debt.

Valuation Model

A financial model that determines the present value of an asset or business, based on variables such as cash flows and growth rates.