When a cascading series of defaults arises, there is not enough money to pay off outstanding debt, resulting in

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A cascading series of defaults results in a shortage of funds to pay off outstanding debt, leading to deflation - a decrease in the general price level of goods and services in an economy over a period of time. This can lead to a decrease in economic activity, as consumers cut back on spending due to uncertainty about the future, which can, in turn, lead to unemployment. Inflation and surplus spending are not accurate descriptions of the situation.

When a Cascading Series of Defaults Arises, There Is Not