The Process of Deleveraging Refers to

question 15

Multiple Choice

The process of deleveraging refers to

• A) cutbacks in lending by financial institutions.
• B) a reduction in debt owed by banks.
• C) both A and B.
• D) none of the above.

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Definitions:

Consumer Goods

Products and services that are purchased for personal use or consumption by the general public.

Capital Goods

Goods that are used in producing other goods and services rather than being bought by consumers.

Opportunity Cost

The cost of forgoing the next best alternative when a decision is made to choose one option over another.

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that a society can produce with existing resources and technology, underlining the concept of opportunity cost.