How Did the United States Become a Net Debtor in the 1980s

question 77

Essay

How did the United States become a net debtor in the 1980s? Is our foreign debt a significant problem? Explain.

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Definitions:

Investee Earnings

The portion of income attributable to an investor from its investment in an associated company.

Cash Dividends

Payments made by a corporation to its shareholders from the company's profits.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it.