A Likely Consequence of Debt Default Is

question 15

Multiple Choice

A likely consequence of debt default is:

• A)a decrease in the federal cost of borrowing.
• B)an increase in unemployment due to growing uncertainty.
• C)a sudden decline in the market interest rates.
• D)an increase in the credit flows in an economy.
• E)a sudden increase in the investment flows in the economy.

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Definitions:

Standard Error

A statistical measure that quantifies the variability or dispersion of a sample statistic from the population parameter it estimates.

Population Distribution

A term that describes how the values of a variable are distributed across an entire population.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Normal Distribution

A bell-shaped curve distribution that is symmetrical around the mean, where the bulk of the values lie near the center and it tails off towards the extremes.