Which of the Following Is Most Likely to Result from a Rising

question 54

Multiple Choice

Which of the following is most likely to result from a rising household debt/income ratio?

• A) Household income will rise rapidly.
• B) Household consumption will fall as a share of income.
• C) Households will be in a better position to deal with unexpected events that force major adjustments.
• D) A larger share of household income will be required to meet interest payments on debt.

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Definitions:

P

Sometimes used as shorthand for "P-value," which assesses the strength of evidence against a null hypothesis in statistical testing.

z

A statistical measure representing the number of standard deviations a data point is from the mean of a distribution.

Exponential Probability Distribution

A statistical distribution used to model the time between events in a Poisson process, characterized by a constant rate of occurrence.

Continuous Distribution

A probability distribution in which the variable can assume an infinite number of values within a given range.