How Does Output Volatility Affect the Interest Rate That a Country

question 115

Essay

How does output volatility affect the interest rate that a country will face if it chooses to borrow in credit markets? Explain.

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Definitions:

Mean

The arithmetic average of a set of values, calculated by adding all the numbers together and dividing by the count of values.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, showing how much the values differ from the mean.

Mean

The average of a set of numerical values, calculated as the sum of the values divided by the number of values.

Mean

The arithmetic average of a set of numbers, calculated by adding them together and dividing by the number of quantities.