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:

Residuals

Differences between observed values and the values predicted by a statistical model, indicating the error in predictions.

Game Winnings

The total amount of money or points a player or team receives as a result of winning a game or bet.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, morals, beliefs, and habits.

Autocorrelation

The correlation of a signal with a delayed copy of itself as a function of delay, often used in time series analysis.