The Problem of Moral Hazard Has Led

question 24

Multiple Choice

The problem of moral hazard has led

• A) the governments of many developing countries to guarantee repayment of all loans.
• B) to higher growth rates in Latin America.
• C) to excessively speculative investment.
• D) to both privilege and responsibility of creditors.
• E) to stable investments with small and steady expected gains.

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Definitions:

Seventh-Grade

Typically refers to the second year of middle school in many education systems, where students are usually around 12 to 13 years old.

Operant Conditioning

An approach to learning in which the force of a behavior is shaped through positive reinforcement or negative consequences.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of no exposure to the conditioned stimulus.

Respondent Behavior

Behavior that occurs as a direct response to a specific stimulus, often reflexive or involuntary in nature.