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Question 6 point) Explain how investors preferences for commercial paper change during a recession. How should this reaction affect the difference between commercial paper rates and T-bill rates during recessionary periods Investors seek greater uquidity and thus bid up the price (lowering the yield) of commercial paper. O Investors seek greater safety and thus bid up the price (lowering the yield) of U.S.Treasuries Investors do not care either way. None of the above

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