A Friend Claims That the United States Is a Net

question 16

Multiple Choice

A friend claims that the United States is a net international debtor.The best way of testing this claim is to see whether

• A)U)S. foreign liabilities exceeded U.S. foreign income.
• B)U)S. receipts from foreign assets exceeded U.S. payments to foreign owners of U.S. assets.
• C)U)S. official reserve assets were positive or negative.
• D)the United States ran a balance of payments surplus or deficit last year.

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Definitions:

Deprivation

A state of lacking or being denied necessary goods or qualities, leading to adverse physical or psychological effects.

Contagion

The process by which extreme passions supposedly spread rapidly through a crowd like a contagious disease.

Labor Efficiency

The measure of the output (in terms of goods produced or services rendered) per unit of labor input.

Variance

The difference between planned, budgeted, or standard amounts and actual amounts in accounting and statistics.