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:

Budgeting Formulas

Mathematical expressions or guidelines used in the process of preparing budgets to estimate revenues, expenses, and net income.

Revenue

The total amount of money generated by a company from its activities, such as sales of goods or services, before any expenses are subtracted.

Customers Served

The number of clients or customers a business has provided products or services to within a specific time period.

Flexible Budget

A budget that adjusts or flexes with changes in volumes or activity levels, allowing for more accurate budgeting and performance evaluation.