Which of the Following Statements Characterizes the 1970s in the United

question 55

Multiple Choice

Which of the following statements characterizes the 1970s in the United States?

• A) The victories of the Vietnam War left Americans proud and eager to show their strength in other similar crises around the world.
• B) Whereas the 1950s and 1960s had been a period of simplicity and conservation in America, the 1970s saw the onset of carefree consumerism.
• C) The nation's bicentennial of its independence from Great Britain saw Americans demonstrating unprecedented faith in the American dream.
• D) Although the American economy was flourishing, the public experienced a period of discontent due to a series of scandals involving the Carter administration.
• E) The nation experienced public frustration and a loss in self-confidence in the wake of the failed Vietnam War, Watergate scandal, and spike in oil prices.

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

FCFF

Free Cash Flow to the Firm; a measure of financial performance that shows how much cash is generated by a company after accounting for capital expenditures and operating expenses.

EBIT

Stands for Earnings Before Interest and Taxes, a measure of a firm's profit that includes all incomes and expenses except interest and income tax expenses.

Depreciation

The gradual reduction in the fair market value of tangible assets over time due to use, wear, and tear or obsolescence.