Which Statement(s) Is/are TRUE? I

question 336

Multiple Choice

Which statement(s) is/are TRUE? I. The crowding-out effect can be mitigated if the funds from deficit spending are used for public investment.
II) The majority of the U.S. national debt is held by the foreign public and is owned by foreign banks, corporations, mutual funds, pension plans, and individuals.
III) It's always wise for a country to pay off its debt.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III only

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Definitions:

Assets

Economic resources owned or controlled by a business or an individual that are expected to bring future benefits.

Financial Statements

Official documentation of a business, individual, or entity's financial condition and operations, normally comprising the income statement, balance sheet, and statement of cash flows.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activities into operating, investing, and financing.

Statement of Stockholders' Equity

A financial statement that shows changes in the value of a company’s equity over a specified period.