Why did the default-risk premium increase during 20072009. How did that increase affect interest rates?

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Why did the default-risk premium increase during 2007–2009. How did that increase affect interest rates?

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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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Question Posted: Feb 04, 2016 06:49 AM

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Why did the default-risk premium increase during 20072009. How did that increase affect interest rates?

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The defaultrisk premium increased primarily due to the failure of Lehma...View the full answer

Macroeconomics

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