Most of the Change from 1980 to 1987 in U

question 183

Multiple Choice

Most of the change from 1980 to 1987 in U.S.net capital outflow as a percent of GDP was due to a(n)

• A)decrease in U.S.investment.
• B)decrease in U.S.national saving.
• C)increase in U.S.investment.
• D)increase in U.S.national saving.

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Definitions:

Commercial Substance

A characteristic of transactions that indicates a change in future cash flows as a result of economic activities, leading to a real economic impact.

Asset Improvements

Expenditures made to increase the useful life, efficiency, or productive capacity of an asset, typically capitalized and amortized over time.

Ordinary Maintenance

Refers to routine upkeep and repairs necessary to maintain assets in their current condition without improving or extending their life.

Long-Lived Assets

Tangible or intangible resources owned by a company with a useful life extending beyond one year, such as buildings, equipment, and patents.