By the End of the 1970s, the Economy in the Soviet

question 40

Multiple Choice

By the end of the 1970s, the economy in the Soviet bloc fell seriously behind the West mainly because

• A)communist ideology had eliminated the consumer mentality.
• B)Western economic warfare and sanctions succeeded.
• C)of a lack of flexibility and freedom to experiment.
• D)stagflation in the West spread eastward.
• E)of the expense involved in the arms race with the United States.

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Definitions:

Loan

A financial agreement where a borrower receives a specific amount of money from a lender and is obligated to repay it back with interest over a predetermined period.

Maturity Matching

A strategy in finance where the duration of investments in assets is matched with the duration of liabilities or obligations, aiming to reduce financial risk.

Net Operating

Refers to the profit a company makes from its usual business operations, before taxes and interest, indicating the financial health of the company's core activities.

Short-term Rates

Interest rates applying to loans or debt instruments with maturities typically less than one year; often influences other rates in the economy.