Question: QUESTION 17 Suppose that you are forecasting that the default spread is going to be more positive and widen. Which of your following beliefs is

QUESTION 17

Suppose that you are forecasting that the default spread is going to be more positive and widen. Which of your following beliefs is most likely to be FALSE?

a. You believe that economic recession is looming

b. You believe that the economy is going to contract

c. Term spread is likely to be negative

d. You believe that the economy is going to expand

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