Which Is the Most Accurate Statement

question 129

Multiple Choice

Which is the most accurate statement?

• A)We are living well beyond our means and we face an imminent financial crisis as foreigners refuse to accept U.S.dollars.
• B)We cannot continue running huge current account deficits.
• C)We can easily run up larger and larger current account deficits without any serious consequences.
• D)Large and growing current account deficits are good for our economy.

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Definitions:

Growth Opportunities

Prospects or opportunities for a business to expand its operations, increase sales, and enhance profitability.

Existing Assets

Assets that are already owned by a company, including both tangible assets like property and equipment, and intangible assets like patents and trademarks.

Earnings Retention Rate

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Rate Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.