Explain Why a Large Deflation Could Force Many Borrowers to Default

question 131

Essay

Explain why a large deflation could force many borrowers to default on their loans.

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Definitions:

Equal Chance

This term means having the same probability or likelihood of occurring as another event, situation, or outcome.

Statistically Significant

A term indicating that the likelihood of an observed difference or relationship happening by chance is low, typically below a pre-set threshold of probability.

P-value

A statistical measure indicating the probability that the observed data would occur by chance if the null hypothesis were true.

Inferential Statistics

Statistical methods that allow conclusions to be drawn about populations based on sample data.