Which of the Following Is Not True About the U

question 40

Multiple Choice

Which of the following is not true about the U.S.twin deficits?

• A)The U.S.is now the world's leading creditor
• B)The U.S.borrows huge sums from abroad
• C)Some critics blame U.S.fiscal policy for the switch from a creditor to a debtor nation
• D)Japan and China are big buyers of U.S.Treasury securities
• E)A debtor country becomes more beholden to those countries that supply credit

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Definitions:

Merged Firm

A new entity formed through the combination or acquisition of two or more companies, which may result in various financial and operational synergies.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Market Price

The present rate at which a service or asset is available for purchase or sale.

True Synergies

The real and achievable benefits and efficiencies gained by combining companies, processes, or systems, often cited as a justification for mergers and acquisitions.