Problem
What would you expect to happen to the yield spread under the following circumstances?
(A) An energy shock doubles the price of crude oil.
(B) A major tax cut.
(C) A war.
(D) Credit restrictions.
(E) Consumer spending boom.
(F) Unemployment declines to full-N level.
(G) Value of the dollar appreciates.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.