According to the Text, There Is Evidence That the Debt

question 15

Multiple Choice

According to the text, there is evidence that the debt ratios (debt/capital) of MNCs based in:

• A) the U.S. tend to be generally higher than MNCs headquartered in Japan and Germany.
• B) China tend to be generally higher than MNCs headquartered in other non-U.S. countries.
• C) the U.S. tend to be generally lower than MNCs headquartered in Japan and Germany.
• D) A and B

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Definitions:

Endowment

The total resources available to an individual or economy, including natural, human, and physical assets.

Utility Function

A mathematical representation of how individual preferences can be quantified over a set of goods and services, reflecting satisfaction levels from their consumption.

Consumption

The process by which households make use of goods and services.

Interest Rate

The portion of a loan accumulating interest for the borrower, usually articulated as an annual percentage of the unpaid loan balance.