Which of the Following Would increase the Likelihood That a Company

question 8

Multiple Choice

Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?

• A) An increase in costs incurred when filing for bankruptcy.
• B) An increase in the corporate tax rate.
• C) An increase in the personal tax rate.
• D) The Federal Reserve tightens interest rates in an effort to fight
• Inflation.
• E) The company's stock price hits a new low.

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Definitions:

S. Freud

The Austrian neurologist Sigmund Freud founded the therapeutic approach of psychoanalysis, where psychopathological issues are addressed through a dialogue between the analyst and the patient.

Classical Conditioning

A learning process in which two stimuli are continuously coupled; the response, initially precipitated by the second stimulus, is ultimately precipitated by the first stimulus by itself.

UCS

An acronym for "Unconditioned Stimulus," a stimulus that naturally and automatically triggers a response without prior learning.

CS

Common shorthand for "conditioned stimulus," a term from classical conditioning in psychology that refers to a previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.