U.S. Imports Are

question 205

Multiple Choice

U.S. imports are

• A) not added to U.S. GDP because they are produced abroad
• B) added to U.S. GDP because they are consumed domestically
• C) added to U.S. GDP because they represent an increase in inventories
• D) added to U.S. GDP as government purchases because the government decides what goods may be imported
• E) not added to U.S. GDP because they are intermediate goods

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Definitions:

Capital Structure

The specific mixture of debt and equity used by a firm to finance its overall operations and growth.

Liquid Assets

Assets that can be quickly and easily converted into cash without significant loss in value.

Statement of Financial Position

Also known as a balance sheet, this financial statement summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into its financial health.

Shareholders' Equity

The amount of capital that shareholders have invested in a company, equal to the company's total assets minus its total liabilities.