When Private Lenders Learned the Size of Greece's Budget Deficits

question 81

Multiple Choice

When private lenders learned the size of Greece's budget deficits and debt in 2009, they:

• A)promptly made loans to the Greek government to prevent a financial crisis.
• B)refused to make further loans to Greece.
• C)seized assets that belonged to the Greek government.
• D)nationalized banks and the manufacturing industry in Greece.

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Definitions:

Test Statistic

A value calculated from sample data during hypothesis testing. It is used to determine whether to reject the null hypothesis.

Alternative Hypothesis

In hypothesis testing, the hypothesis that contradicts the null hypothesis, indicating there is an effect or a difference.

Test Statistic

An outcome obtained from samples in a hypothesis experiment, crucial in deciding if the null hypothesis should be dismissed.

P-value

Assuming the correctness of the null hypothesis, it is the possibility of obtaining test results that are equally or more extreme than those observed.