Which of the Following Is True of America's Economic Relations

question 29

Multiple Choice

Which of the following is true of America's economic relations with the rest of the world during the 1920s?

• A) American overseas investments increased substantially.
• B) The nation suffered from an adverse balance of trade.
• C) The nation experienced a reduction in its foreign trade.
• D) The United States organized and supported the World Bank.

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Definitions:

Fixed Costs

Expenses that do not change regardless of the level of production or business activity, such as rent, salaries, and insurance.

Selling Price

The amount of money for which an item is sold, potentially different from listing or cost price due to discounts or negotiations.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Net Income

The amount of earnings left over after all expenses and taxes have been deducted from total revenue.