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An increased risk of a financial crisis in the euro area should cause the Multiple Choice demand for all government securities including U.S. Treasury securities
An increased risk of a financial crisis in the euro area should cause the Multiple Choice demand for all government securities including U.S. Treasury securities to decrease. risk spread between U.S. Treasury bonds and other bonds to decrease. price of U.S. Treasury bonds to increase and the yield on other bonds to decrease. price of U.S. Treasury bonds to increase and the yield on other bonds to increase. If the Federal Reserve surprises investors by announcing an easing of monetary policy Multiple Choice the yield curve would flatten. it should have no impact on the slope of the yieid curve. we should expect the yield curve to possibly become inverted. we should expect the yield curve to steepen
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