Under John Foster Dulles's Policy of "Massive Retaliation," Announced in 1954,the

question 111

Multiple Choice

Under John Foster Dulles's policy of "massive retaliation," announced in 1954,the United States would

• A) counter any Soviet military move with a larger American force.
• B) win the Cold War regardless of the financial cost.
• C) use nuclear weapons against communist aggression.
• D) use military force before diplomacy in dealing with the Soviet Union.
• E) rely primarily on large conventional forces in local conflicts to defeat communism.

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Definitions:

Pre-Tax Cost

The expense or cost incurred by an entity before the deduction of taxes.

Net Present Value

A financial measure that computes the disparity between the present value of cash coming in and going out over a certain period.

Flotation Cost

The total costs incurred by a company in issuing new securities, including underwriting, legal, registration, and distribution fees.