What Was the Effect of the Marshall Plan

question 9

Multiple Choice

What was the effect of the Marshall Plan?

• A)It temporarily restored good relations between the United States and the Soviet Union for several years.
• B)It caused a major drop in the industrial production of Western and Eastern Europe, hurting international trade.
• C)It was an unsuccessful military strategy that culminated in the largest battle and loss of life since the end of World War II.
• D)It drew the nations of Western Europe further apart from one another, dissolving several of their alliances.
• E)It greatly increased agricultural output and industrial production in Western Europe but heightened tensions with the Soviet Union.

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Definitions:

Net Income

Net income is the total profit of a company after all expenses and taxes have been deducted from total revenue.

Retained Earnings

Profits that a company keeps after dividends have been paid out, which may be used for investment or to pay off debt.

Retention Ratio

The proportion of net income that is retained rather than distributed to shareholders as dividends.

Selling And Administrative Expenses

Operating expenses related to selling products and managing the business, not directly tied to production.