The Following Questions Refer to the Excerpt Below

question 17

Multiple Choice

The following questions refer to the excerpt below.
"The 1980's have been born in turmoil,strife,and change.This is a time of challenge to our interests and our values and it's a time that tests our wisdom and our skills.At this time in Iran,50 Americans are still held captive,innocent victims of terrorism and anarchy.Also at this moment,massive Soviet troops are attempting to subjugate the fiercely independent and deeply religious people of Afghanistan.These two acts-one of international terrorism and one of military aggression-present a serious challenge to the United States of America and indeed to all the nations of the world.Together,we will meet these threats to peace. I'm determined that the United States will remain the strongest of all nations,but our power will never be used to initiate a threat to the security of any nation or to the rights of any human being.We seek to be and to remain secure-a nation at peace in a stable world.But to be secure we must face the world as it is."
President Jimmy Carter,State of the Union Address,January 23,1980
-Enacting the policies that Carter suggests would require

• A) a reduction in the nation's diplomatic efforts abroad.
• B) internal migration patterns to change.
• C) a shift to isolationism after a period of international intervention.
• D) significant increases in military spending.

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Definitions:

Bankruptcy

The legal status of a person or entity that cannot repay the debts it owes to creditors.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over its entire term and repays the principal at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, accounting for both interest payments and the adjustment of the bond price to its face value.