The Average Default Rate in the Economy Is 1

question 21

Multiple Choice

The average default rate in the economy is 1.5% of the face value of outstanding debt defaults per year.How many years will it be on average before half the firms are no longer in existence if no new firms enter the economy?

• A)44 years
• B)45 years
• C)46 years
• D)47 years

---

Definitions:

Erikson's Theory

A developmental theory that outlines eight stages of psychosocial development, each characterized by a specific conflict that needs to be resolved.

Generativity Versus Stagnation

Generativity versus stagnation is a stage in Erik Erikson's theory of psychosocial development, occurring in middle adulthood, where individuals focus on nurturing the next generation and contributing to society at large, versus becoming self-absorbed and unproductive.

Integrity Versus Despair

A stage in Erikson's theory of psychosocial development, occurring in old age, where individuals reflect on their life and either achieve a sense of fulfillment or experience regret.

Marital Satisfaction

A measure of the happiness or contentment that individuals feel within their marriage or romantic partnership.