Which of the Following Is TRUE of the Relationship Between

question 126

Multiple Choice

Which of the following is TRUE of the relationship between U.S. trade deficits and federal government budget deficits?

• A) Increases in the budget deficit tend to be associated with increases in the trade deficit.
• B) Increases in the budget deficit tend to be associated with reductions in the trade deficit.
• C) Increases in the budget deficit are always associated with increases in the trade deficit.
• D) Increases in the budget deficit are always associated with reductions in the trade deficit.

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Definitions:

Expected Return

The return an investor believes is most likely on an investment—that is, the investor understands that the actual return may be somewhat different in certain investments like stocks. The mean of the probability distribution of returns.

Selling Price

The amount of money for which a product or service is sold to customers.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in cash or as shares.

Investment Return

The gain or loss on an investment over a specified period, including income and changes in value, expressed as a percentage of the investment's cost.