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Question: In 2008, a global economic crisis has started, as economic depression in USA spread to the world. Even though USA was source of the
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In 2008, a global economic crisis has started, as economic depression in USA spread to the world. Even though USA was source of the crises, USA was able to borrow from global markets at much lower rate, showing that risk premium in USA was actually very low. Can you please write why according to you risk premium in USA may have remained low after the onset of global depression. Also, can you please explain your answer.
Thanks in advance, regards
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