Everything Else Held Constant,if the Tax-Exempt Status of Municipal Bonds

question 88

Multiple Choice

Everything else held constant,if the tax-exempt status of municipal bonds were eliminated,then

• A)the interest rates on municipal bonds would still be less than the interest rate on Treasury bonds.
• B)the interest rate on municipal bonds would equal the rate on Treasury bonds.
• C)the interest rate on municipal bonds would exceed the rate on Treasury bonds.
• D)the interest rates on municipal,Treasury,and corporate bonds would all increase.

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Definitions:

Primary Reinforcer

A stimulus that satisfies a basic biological need, such as food or water, and is inherently rewarding.

Negative Reinforcement

Negative reinforcement is a type of operant conditioning that occurs when a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Punishment

The imposition of a penalty as retribution for an offense, with the aim of correcting behavior or serving as a deterrent to others.

Negative Reinforcement

A behavioral psychology concept where the removal of an unfavorable outcome or stimulus strengthens a desired behavior.