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 ________.

• A) right; right
• B) right; left
• C) left; right
• D) left; left

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Definitions:

Projective Testing

A psychological assessment tool that uses ambiguous stimuli to elicit responses that reveal aspects of an individual’s personality.

Personality Trait

enduring characteristics or qualities that describe an individual's behavior across different situations.

Self-Serving Bias

The common tendency to attribute one's successes to personal qualities and failures to external factors, protecting self-esteem.

Bad Officiating

Poor or incorrect decisions made by officials in sports games, which can impact the outcome of the game and is often a source of controversy.