The Monroe Doctrine Was Essentially Intended to Prevent

question 95

Multiple Choice

The Monroe Doctrine was essentially intended to prevent

• A) new European colonies from being established in the Western Hemisphere.
• B) European nations from intervening in the affairs of Latin American countries.
• C) the United States from intervening in the affairs of Latin American countries.
• D) dictatorships in Latin American governments.
• E) Russian control of Alaska.

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Definitions:

Leverage

Use of borrowed capital for investment with the aim to multiply the potential returns, while also increasing the risk of loss.

Independence Hypothesis

In capital structure theory, the original restrictive model by Modigliani and Miller that shows stock price to be independent of capital structure.

Modigliani

Refers to Franco Modigliani, an economist known for his work on the Modigliani-Miller theorem, which addresses the valuation of stocks and corporate taxes.

Miller

Miller refers to the Miller Modigliani theorem or Miller's theory, which deals with the capital structure of a company and the relationship between the return required by investors and the company's equity and debt.