Some Politicians Like to Refer to Cases in Which the United

question 25

True/False

Some politicians like to refer to cases in which the United States intervened successfully in order to establish democracy; Japan and West Germany after WWII are the favorite examples. However, according to the recent empirical research discussed in Chapter 8 (on democratic transitions), evidence shows that although attempts at the external imposition of democracy may promote some democratic-seeming reforms in the short run, they ultimately produce political instability in the target countries and are unlikely to lead to a stable democracy.

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Definitions:

Mortgage Bonds

Bonds secured by a mortgage on a property, providing bondholders a claim against the property in case of default.

Debentures

A type of debt instrument that is not secured by physical assets or collateral but backed only by the general creditworthiness and reputation of the issuer.

Interest Expense

The cost incurred by an entity for borrowed funds, often quoted as an annual rate, and is typically deductible for tax purposes.

Sinking Fund

A reserve fund established by a company to repay debt or replace a preferred stock at a future date through periodic payments.