8. Look again at Figure 5.4 and the spread between the 3-month Treasury bill and the 3-month...
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8. Look again at Figure 5.4 and the spread between the 3-month Treasury bill and the 3-month Certificate of Deposit (CD) rate. What would you expect to happen to that spread if the economy slipped into a recession? Develop your argument in terms of credit risks and likelihoods of default. Is your answer borne out by the graph?
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ISBN: 9780415891639
1st Edition
Authors: Nikiforos T. Laopodis
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