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11-32 the Amount of Leverage of a Borrower and the Probability

question 45

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11-32 The amount of leverage of a borrower and the probability of default are positively related,but only after some minimum level of debt.


Definitions:

Deinstitutionalisation

The policy of moving individuals with mental health conditions out of state-run institutions and then closing these facilities as part of the mental health treatment reform.

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Medications that are used to treat and reduce symptoms of anxiety.

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The junctions between neurons where dopamine, a neurotransmitter involved in reward and pleasure, is transmitted.

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A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions and feelings.

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