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    Money and Banking Study Set 1
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    Exam 6: The Economics of Interest-Rate Spreads and Yield Curves
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    Ceteris Paribus, an Increase in the Government Budget Deficit Will
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Ceteris Paribus, an Increase in the Government Budget Deficit Will

Question 35

Question 35

Multiple Choice

Ceteris paribus, an increase in the government budget deficit will cause the risk premia on corporate bonds to


A) increase.
B) decrease.
C) stay the same.
D) cannot be determined.

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