An increase in default risk on corporate bonds shifts the demand curve for corporate bonds to the right. (II) An increase in default risk on corporate bonds shifts the demand curve for Treasury bonds to the left. (I) is true, (II) false. (I) is false, (II) true. Both are true. Both are false. An increase in default risk on corporate bonds shifts the demand curve for corporate bonds to the left. (II) An increase in default risk on corporate bonds shifts the demand curve for Treasury bonds to the right. (I) is true, (II) false. (I) is false, (II) true. Both are true Both are false. The spread between interest rates on low-quality corporate bonds and U.S. government bonds during the Great Depression. was reversed narrowed significantly widened significantly did not change As a result of the subprime collapse, the demand for low -quality corporate bonds, the demand for high-quality Treasury bonds, and the risk spread. increased; decreased; was unchanged decreased; increased; increased increased; decreased; decreased decreased; increased; was unchanged