The United States Current Account Deficit as a Percentage of GDP

question 14

Multiple Choice

The United States current account deficit as a percentage of GDP has generally

• A) worsened in the 2000s
• B) improved in the 2000s
• C) remained relatively unchanged in the 2000s
• D) the U.S. has been running a current account surplus in the 2000s

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Definitions:

Return on Assets

A profitability ratio indicating the efficiency with which a company uses its assets to generate net income, calculated by dividing net income by total assets.

Return on Equity

A financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how effectively equity supports operations and growth.

Earnings Per Share

A measure of a company's profitability calculated by dividing its net income by the number of outstanding shares of its common stock.

Net Profit Margin Ratio

A profitability ratio calculated by dividing net income by net sales, showing how much profit a company makes for every dollar of its sales.