A Likely Consequence of Debt Default Is

question 15

Multiple Choice

A likely consequence of debt default is:

• A)a decrease in the federal cost of borrowing.
• B)an increase in unemployment due to growing uncertainty.
• C)a sudden decline in the market interest rates.
• D)an increase in the credit flows in an economy.
• E)a sudden increase in the investment flows in the economy.

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Definitions:

Herring

A type of fish that is widely consumed globally, known for its silver color and presence in various cuisines.

Opportunity Cost

The cost associated with the best foregone choice because of a decision.

Machinery

A category of physical hardware used in the production process, including tools, engines, and devices that perform various tasks.

Sweaters

Knitted garments intended to cover the torso and arms, providing warmth and fashioned from materials like wool, cotton, or synthetic fibers.