The Fundamental Idea of the Containment Doctrine, Embraced by President

question 57

Multiple Choice

The fundamental idea of the containment doctrine, embraced by President Truman, was

• A) the Soviet Union should be gradually forced to give up its sphere of influence in Eastern Europe.
• B) the Soviet Union should be prevented from trading with nations in Africa and Asia.
• C) the West and the Soviet Union should seek to contain the spread of nuclear weapons.
• D) Soviet communist expansion in regions of the world should be blocked by firm political, economic, military, and diplomatic defense of free peoples and nations by America.
• E) military competition between the West and the Soviets should be replaced by economic competition.

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Definitions:

Replacement Cost

The cost to replace an asset of a company at the present time, according to its current worth.

ROE

Stands for Return on Equity, a financial ratio that measures the profitability of a company in relation to shareholders' equity.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payouts, indicating the company's long-term earnings growth potential and financial health.

Earnings

Net income of a business entity over a set time frame, indicating its financial performance.