TEST BANK FOR The Economics of Money, Banking, and

Exam (elaborations) TEST BANK FOR The Economics of Money, Banking, and ) The interest rate on Baa (medium quality) corporate bonds is ________, on average, than other interest rates, and the spread between it and other rates became ________ in the 1970s. A) lower; smaller B) lower; larger C) higher; smaller D) higher; larger Answer: D Ques Status: Previous Edition 12) Everything else held constant, a decline in interest rates will cause spending on housing to A) fall. B) remain uncha...