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    Money Banking and Financial Markets Study Set 2
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    Exam 7: The Risk and Term Structure of Interest Rates
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    As GDP Rises The
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As GDP Rises The

Question 119

Question 119

Multiple Choice

As GDP rises the:


A) Risk spread and term spread decrease
B) Risk spread and term spread increase
C) Risk spread increases and the term spread decreases
D) Risk spread decreases and the term spread increases

Correct Answer:

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