All the Following Are Potential Costs of the U

question 138

Multiple Choice

All the following are potential costs of the U.S. national debt except

• A) lower inflation in the future.
• B) higher interest rates that discourage private investment.
• C) a higher international trade deficit.
• D) foreign-held debt that must be repaid.
• E) reduced domestic wealth in the future.

---

Definitions:

Net Credit Sales

The total value of sales made on credit, minus returns and allowances, reflecting the true sales activity.

Average Inventory

The mean value of inventory within a specific period of time, calculated to assess the amount of stock a business typically holds.

Acid-test Ratio

A stringent measure of liquidity that assesses a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.

Receivables

Amounts due from individuals and other companies.