
The 1990-1992 recession in Canada is an example of a recession where
A) a large spike in interest rate spreads indicates no role of shocks to credit market risk.
B) a large spike in interest rate spreads indicates an important role for shocks to credit market risk.
C) there is no spike in interest rate spreads indicating no role of shocks to credit market risk.
D) a decrease in interest rate spreads indicates an important role for shocks to credit market risk.
E) there is no spike in interest rate spreads indicating an important role for shocks to credit market risk.
Correct Answer:
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