Which of the Following Statements Best Expresses the Rationale Behind

question 22

Multiple Choice

Which of the following statements best expresses the rationale behind the Roosevelt Corollary to the Monroe Doctrine?

• A) The United States believed it should extend financial aid to Latin America to help raise the standard of living in the region.
• B) The United States believed that it had the right to colonize Latin America to exploit the resources of the region.
• C) The United States believed it had the right to intervene in the political and financial affairs of Latin American nations so that the region could be stabilized and intervention by European nations prevented.
• D) The United States believed it had an obligation to help the Latin American countries find the political system best suited to their culture.

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the consuming behavior independent of current income.

Aggregate Household

The combined and total measure of all consumers in an economy, accounting for all spending and consumption.

Disposable Income

The amount of money that individuals or households have available to spend or save after income taxes have been deducted.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the amount that needs to be consumed to sustain a basic standard of living.