If Lower Profits in Foreign Countries Result in Decreased Investment

question 37

Multiple Choice

If lower profits in foreign countries result in decreased investment from foreign countries into the United States,continued investment growth from saving will have to rely more on

• A)U.S.household saving.
• B)Local government saving from deficit spending.
• C)Federal government saving from deficit spending.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Noncontrolling Interest

Represents the equity interest in a portion of a subsidiary's net assets that is not attributable directly or indirectly to the parent company.

Common Stock

A type of equity security that represents ownership in a corporation, with holders usually having a vote in corporate decisions but in the last in line during liquidation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often receiving dividends before common shareholders and having a fixed dividend rate.