Which of the Following Statements About U

question 43

Multiple Choice

Which of the following statements about U.S.trade is true?

• A) On average, other countries buy more U.S. goods and services than the United States buys from them.
• B) The United States has a trade deficit with every country with which it trades.
• C) The United States typically has a substantial trade surplus in services.
• D) Since the U.S. GDP is the largest in the world, it has a very high export ratio.

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Definitions:

Constant Growth Model

A dividend discount model that assumes dividends will increase at a constant growth rate indefinitely, useful for valuing stocks.

Gordon Model

A dividend discount model that values a stock by considering future dividends that grow at a constant rate, also known as the Gordon Growth Model.

Investor Demand

The interest and willingness of investors to purchase securities and other investment products, influenced by economic conditions, market trends, and the performance of specific investments.

IPO

Initial Public Offering, which is the process by which a private company goes public by selling its shares to the public for the first time.