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An Increased Risk of a Financial Crisis in the Euro

Question 12

Multiple Choice

An increased risk of a financial crisis in the euro area should cause the:


A) demand for all government securities including U.S. Treasury securities to decrease.
B) risk spread between U.S. Treasury bonds and other bonds to decrease.
C) price of U.S. Treasury bonds to increase and the yield on other bonds to increase.
D) price of U.S. Treasury bonds to increase and the yield on other bonds to decrease.

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