Which of the Following Contributed Most to Many Companies Becoming

question 104

Multiple Choice

Which of the following contributed most to many companies becoming highly leveraged in the lead-up to the recent economic downturn in 2008?

• A) high interest rates
• B) low interest rates
• C) limited liquidity
• D) no liquidity

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, leading to changes in voluntary behavior.

Classical Conditioning

A conditioning technique where, through repeated associations, a response at first elicited by a second stimulus is in the end elicited by the first stimulus without the second.

Reinforcer

An element in behaviorist psychology that strengthens a behavior or increases the likelihood of its repetition.

Cognitive Learning

A style of learning that involves understanding, thinking, problem-solving, and remembering, by which knowledge is gained and retained.