If Foreigners Spend More on U

question 2

Multiple Choice

If foreigners spend more on U.S.- made goods and services than we spend on theirs,

• A) we must borrow from foreigners because of low imports.
• B) funds flow in from abroad to help finance U.S. investment.
• C) all U.S. national saving remains in the United States
• D) foreigners must borrow from the United States or sell U.S. assets to make up the difference.

---

Definitions:

Double-Declining-Balance

A method of accelerated depreciation which computes depreciation at twice the straight-line rate, applied to a decreasing book value each year.

Footnote Disclosure

Additional information provided at the bottom of financial statements, explaining the numbers or policies above.

Cumulative Effect Change

The aggregate change in a company's earnings resulting from a change in accounting principle, reported in the period in which the change is made.

Opening Retained Earnings

The balance of retained earnings at the beginning of the accounting period.