Present Consumption Supported by Large Trade Deficits May Come at the Expense

question 54

Multiple Choice

Present consumption supported by large trade deficits may come at the expense of

• A) permanent debt to foreign interests.
• B) permanent foreign ownership of formerly U.S.-owned assets.
• C) large sacrifices of future consumption.
• D) all of these.

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Definitions:

Peripheral Route

A mode of persuasion that involves less cognitive processing, relying on peripheral cues like attractiveness or celebrity status, as proposed in the Elaboration Likelihood Model.

Need For Cognition

a personality trait that signifies a person's enjoyment of engaging in deep thought and the enjoyment of intellectual activities.

Self-Monitoring

An individual difference in people’s desire and ability to adjust their self-presentations for different audiences.

Psychological Reactance Theory

A theory which proposes that people value thinking and acting freely. Therefore, situations that threaten their freedom arouse discomfort and prompt efforts to restore freedom.