If Lower Profits in Foreign Countries Result in Decreased Investment

question 22

Multiple Choice

If lower profits in foreign countries result in decreased investment from foreign countries into the United States,continued investment growth from saving will have to rely more on

• A)U.S.household saving.
• B)Local government saving from deficit spending.
• C)Federal government saving from deficit spending.
• D)Stock market investment.

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Definitions:

Depreciation Rates

Percentages or methods used to systematically reduce the book value of a tangible asset over its useful life.

Double-Declining-Balance

An accelerated depreciation method that doubles the straight-line depreciation rate, reducing the asset's book value more quickly.

Straight-Line

A method of calculating depreciation of an asset, which allocates an equal amount of depreciation each year over the asset's useful life.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.