In the Early 1980s, When a Recession Raised Concern About

Multiple Choice

In the early 1980s, when a recession raised concern about corporations' ability to repay debt, there was a dramatic increase in

A) the yield on medium-quality corporate bonds relative to the yield on long-term Treasury securities.
B) the yield on long-term Treasury securities relative to the yield on medium-quality corporate bonds.
C) the yield on six-month T-bills relative to the yield on long-term Treasury securities.
D) the yield on interest-earning checking deposits in commercial banks relative to the yield on six-month T-bills.