Following the Downgrade of U

question 54

Multiple Choice

Following the downgrade of U.S.debt by Standard & Poor's in 2011

• A) other rating agencies also downgraded U.S. debt.
• B) interest rates spiked as investor's perception of risk increased.
• C) investors didn't seem to be any more concerned about default risk than before the downgrade.
• D) the U.S. implemented a plan to significantly reduce its budget deficit later that year.

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Definitions:

Intercept

The point at which a line crosses the axis in a graph, often associated with the starting value of a function when all independent variables equal zero.

Dependent Variable

A variable in scientific research or statistical modeling whose value is subject to change based on the changes in another variable, known as the independent variable.

Independent Variable

A variable that is manipulated or changed to observe its effect on a dependent variable.

Sample Correlation Coefficient

A measure that indicates the extent to which two variables change together in a sample.