To the Extent That Mortgage Defaults Contributed to the Financial

question 95

Multiple Choice

To the extent that mortgage defaults contributed to the financial crisis of 2008-2009 in the United States,blame for these actions lies with:

• A) homebuyers who borrowed more than they could afford to repay.
• B) mortgage brokers who encouraged households to borrow excessively.
• C) government policymakers who pursued policies to encourage homeownership.
• D) all of the above.

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Definitions:

Distribution

In statistics, distribution describes how the values of a dataset or variable are spread or dispersed.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., 4 in 4x).

Model

A simplified representation of a system or phenomenon that describes its structure or function, often used in simulations.

Studentized Residuals

Residuals divided by an estimate of their standard deviation, used for identifying outliers in regression analysis.