Recessions are typically associated with increases on interest rates on risky securities coupled with increases on interest rates on Treasury securities.

Question

Quizplus · Accepted Answer

Recessions are typically associated with decreases in interest rates as a way to stimulate borrowing and economic activity. Therefore, it is unlikely that interest rates on risky securities and Treasury securities would both increase during a recession.

Recessions Are Typically Associated with Increases on Interest Rates on Risky