Asked by Kawinthida Kanajoth on May 06, 2024
Verified
Statement I.A case can be made that,as a nation,the U.S.is living beyond its means.
Statement II.Within the next five years,foreigners will own almost half of America.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Living Beyond Its Means
A situation wherein an entity (like a government, company, or individual) spends more money than it receives in income or revenue, leading to debt accumulation.
Foreigners Own
The ownership of domestic assets such as property, companies, or government debt by non-resident individuals or entities.
- Investigate the impact of currency valuation on global investment movements and trade deficits.
Verified Answer
BK
Brandon KipperMay 11, 2024
Final Answer :
A
Explanation :
Statement I is true as the U.S. has a significant national debt and trade deficits, indicating it spends more than it earns. Statement II is false because, although foreign ownership of U.S. assets is significant, it is not projected to reach nearly half of America within the next five years.
Learning Objectives
- Investigate the impact of currency valuation on global investment movements and trade deficits.