The Problem of Moral Hazard Has Led

question 24

Multiple Choice

The problem of moral hazard has led

• A) the governments of many developing countries to guarantee repayment of all loans.
• B) to higher growth rates in Latin America.
• C) to excessively speculative investment.
• D) to both privilege and responsibility of creditors.
• E) to stable investments with small and steady expected gains.

---

Definitions:

Determination

In statistics, determination often refers to the coefficient of determination, which measures the proportion of variance in a dependent variable predictable from an independent variable.

Estimated Regression

A statistical method used to predict the value of a dependent variable based on the values of one or more independent variables.

SSR

Sum of Squares due to Regression, a measure in statistics used to quantify the variance explained by a regression model.