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Other Things Being Equal, an Increase in the Default Risk

question 7

Multiple Choice

Other things being equal, an increase in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Canada bonds to the ________.


Definitions:

Ordinary Consumer

A typical or average customer who purchases goods and services for personal use.

Fair Ad

An advertisement that is honest, does not mislead, and provides a truthful representation of the product or service offered.

Benefit To Consumers

The advantage or positive outcome that consumers receive from a product, service, or regulatory action, which may include cost savings, improved safety, or enhanced quality.

Competition Outweighs

The situation in which the benefits gained from competitive practices exceed any negative consequences.

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