Question: During a flight to quality a. the spread between Treasury bonds and Baa bonds increases. b. the spread between Treasury bonds and Baa bonds decreases.

During a "flight to quality"

a. the spread between Treasury bonds and Baa bonds increases.

b. the spread between Treasury bonds and Baa bonds decreases.

c. the change in the spread between Treasury bonds and Baa bonds cannot be predicted.

d. the spread between Treasury bonds and Baa bonds is not affected.

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