Which of the Following Statements Is Correct

question 43

Multiple Choice

Which of the following statements is correct?

• A)The United States has a more equal distribution of income than other developed countries such as Japan and Germany.
• B)The statement "a rising tide lifts all boats" illustrates how economic growth reduces the number of people with income levels below the poverty line.
• C)The economic life cycle explains why people base spending decisions on transitory income.
• D)The United States has more income inequality than developing countries, including Mexico and Brazil.

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Definitions:

Unrealized Gain

The hypothetical profit on an investment that has not yet been sold, and thus, not yet converted into actual cash.

Hedged Item

An asset, liability, or planned transaction exposed to price risks that are offset by using a hedging instrument.

Anticipated Transaction

A future financial operation or deal that is expected to occur.

Existing Asset

Assets that are currently in possession or use by a company, as opposed to newly acquired or disposed assets.