Why Was US Direct Investment in Latin America Lower in 1985

question 28

Multiple Choice

Why was US direct investment in Latin America lower in 1985 than in 1980?

• A)inflation in the US
• B)recessions in the Latin American countries
• C)international debt problems in the Latin American countries
• D)a recession in the US

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Definitions:

Quantity Demanded

Represents the total amount of a good or service that consumers are willing and able to purchase at a given price.

Relatively Inelastic

Describes a situation where the demand or supply of a product is not significantly changed by alterations in price.

Total Revenue

The sum total of revenue a business earns from its sales activities and service provisions during a particular period.

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in price.