If the general level of risk in the economy increases, then (all else constant) we would expect that: 1) There is no reason to believe that either bond prices or stock prices will change in any predictable direction. 2) Bond prices will increase, and stock prices will increase. 3) Bond prices will decrease, and stock prices will increase. 4) Bond prices will decrease, and stock prices will decrease. 5) Bond prices will increase, and stock prices will decrease