Bonds with Relatively High Risk of Default Are Called

question 82

Multiple Choice

Bonds with relatively high risk of default are called

• A)Brady bonds.
• B)junk bonds.
• C)zero coupon bonds.
• D)investment grade bonds.

Understand the effects of price ceilings and price floors on market outcomes.

Analyze the impact of government subsidies on market prices, quantities, and the distribution of benefits between consumers and producers.

Understand the impact of a tax or subsidy on the selling price of a good and the net price paid by buyers.

Interpret graphical representations of market situations including the effects of various taxes and subsidies.

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Definitions:

Temporal Contiguity

The idea that events experienced close together in time are readily associated with each other.

Premack Principle

A psychological principle suggesting that more probable behaviors will reinforce less probable behaviors.

Law Of Effect

A principle in psychology stating that behaviors followed by pleasant consequences are likely to be repeated, while those followed by unpleasant consequences are less likely to be repeated.

Reinforcement

A stimulus or event that follows a response and increases the likelihood of that response being repeated.