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Q. |
A widening of the difference between the return on corporate bonds and on government bonds might suggest which of the following? |
A. | The economy is on the brink of recession. |
B. | Interest rates are going to rise in future. |
C. | Government bonds are becoming more risky compared to corporate bonds. |
D. | Investors should avoid government bonds. |
Answer» A. The economy is on the brink of recession. |
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