Based on complex economic models, analysts in 2005 projected that a specific combination of housing market inflation and deregulated lending would lead to a global financial crisis. This _______ was unfortunately confirmed by the market collapse of 2008.
Which choice completes the text with the most logical and precise word or phrase?
theory
evidence
constant
prediction
Correct Answer: D
Choice D is the best answer. The text explicitly states that analysts "projected" the crisis. The next sentence refers to this act as "This _______." Therefore, "prediction" is the correct word.
Choice A is incorrect because while it involves a model or theory, the specific antecedent is the act of projecting a future event. Choice B is incorrect because the prediction was confirmed by the event (evidence), it was not the evidence itself. Choice C is incorrect because "constant" implies something unchanging, not a forecast.