During the recession of the early 1980s the prices of U.S. Treasury securities
A)rose relative to the prices of corporate bonds.
B)fell relative to the prices of corporate bonds.
C)remained in the same relative position to the prices of corporate bonds.
D)were frozen by order of the federal government.

Question

Quizplus · Accepted Answer

During the recession of the early 1980s, there was a flight to safety as investors sought the perceived safety of U.S. Treasury securities. This increased demand for Treasuries caused their prices to rise relative to the prices of corporate bonds.

During the Recession of the Early 1980s the Prices of U.S