Suppose That Many Corporations Begin Issuing New Bonds

question 175

Multiple Choice

Suppose that many corporations begin issuing new bonds.Everything else being equal, what is most likely to happen to the interest rate?

• A)It will increase.
• B)It will decrease.
• C)It will not change.
• D)It will vary according to a random walk.

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Definitions:

Secondary Reinforcement

A concept in behaviorism where a stimulus reinforces a behavior not because it satisfies a biological need, but because it is associated with a primary reinforcer.

Praise

The expression of approval, commendation, or admiration towards someone or something.

Awards

Recognitions or prizes given for achievement, excellence, or performance in a particular field or discipline.

Positive Reinforcement

An increase in future behavior due to the addition of a stimulus immediately following a response.