Drawing on the Assumptions of the "Domino Theory," Truman Believed

question 50

Multiple Choice

Drawing on the assumptions of the "domino theory," Truman believed the Soviet and Communist activities in Greece would

• A) provoke an immediate war with the Americans and the British that would escalate into the third world war.
• B) help them gain the rich natural resources of the Mediterranean countries and, thus, limit the claim European countries had.
• C) be merely a game to test the strength of their diplomatic strategies and would not actually pose a threat to the United States.
• D) allow for the fall of the other nations in eastern Mediterranean, followed by those in Western Europe, if unchecked.
• E) free those countries from dictatorships and, thus, would ultimately prove beneficial to the United States.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

Yield to Maturity

The anticipated full income on a bond, provided it is held through to its expiration date.

Interest Rate Risk

The risk of losing money on investments because of changes in interest rates.