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galina1969 [7]
4 years ago
10

The spread between the interest rates on Baa corporate bonds and U.S. government bonds is very large during the Great Depression

years 1930-1933. Explain this difference using the bond supply and demand analysis.
Business
1 answer:
Ray Of Light [21]4 years ago
5 0

Answer:

During the Great Depression many businesses failed.  The default risk for the corporate  bond increased compared to the default-free Treasury bond.  The demand for corporate bonds decreased while the demand for Treasury bonds increased resulting in a larger risk  premium.

Explanation:

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Supervisor must make more adjustments
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Suppose that consumers become pessimistic about the future health of the economy and so they cut back on their consumption spend
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3 0
3 years ago
When the price of pencils increases from $1.50 to $2.50, there is an increase in quantity demanded of pens from 100 to 150. the
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Answer:

0.75

Explanation:

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I hope my answer helps you

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