When a recession came along in the late 1980s:
A)the junk bond market collapsed.
B)the merger wave beginning in 1981 accelerated.
C)the mastermind of the junk bond market, Michael Milken, received the Nobel Peace Prize in Economics.
D)All of the above

Question

Quizplus · Accepted Answer

The collapse of the junk bond market was a major factor in the recession of the late 1980s, as many companies that had relied on these high-risk, high-yield securities were unable to repay their debts. The other choices are incorrect: the merger wave did not accelerate during the recession, and Michael Milken did not receive the Nobel Peace Prize in Economics (in fact, he was later convicted of securities fraud and served time in prison).

When a Recession Came Along in the Late 1980s