Which One of the Following Is Not a Major Factor

question 206

Multiple Choice

Which one of the following is not a major factor that contributed to large trade deficits in the United States in the period 2002-2007?

• A)a declining saving rate coupled with a rising investment rate in the U.S.
• B)a U.S. economy growing faster than its trading partners
• C)large trade deficits with OPEC economies
• D)flexible exchange rate between the U.S. dollar and the Chinese yuan

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Definitions:

Accumulate

In investment terms, to gradually gather or acquire an increased quantity of a particular asset or security over time.

Annuity

An investment product providing a stable flow of payments, often employed to generate earnings for retired individuals.

Return

Return refers to the gain or loss generated on an investment over a particular period, expressed as a percentage of the investment's initial cost.

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.