Most of the Change from 1980 to 1987 in U

question 183

Multiple Choice

Most of the change from 1980 to 1987 in U.S.net capital outflow as a percent of GDP was due to a(n)

• A)decrease in U.S.investment.
• B)decrease in U.S.national saving.
• C)increase in U.S.investment.
• D)increase in U.S.national saving.

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Definitions:

Amortized Bond Discount

The gradual reduction of a bond discount over the life of the bond, treated as additional interest expense over the bond's term.

Straight-line Method

A method of accounting for depreciation that allocates an asset's cost evenly over its useful life.

Called Bonds

Bonds that an issuer redeems before their maturity date at a specified call price.

Callable Bonds

Bonds that can be redeemed (called) by the issuer prior to their maturity date, typically at a premium above their par value.