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Business, 10.03.2020 17:33 kiraswife

During 2008, the difference in yield (the yield spread) between 3-month AA-rated financial commercial paper and 3-month AA-rated non-financial commercial paper steadily increased from its usual level of close to zero, spiking to over a full percentage point at it peak in October 2008. Which of the following explains this sudden increase?
The increase in the yield spread was a result of the decrease in demand for financial commercial paper due to the uncertainty and soundness of financial companies and banks.

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During 2008, the difference in yield (the yield spread) between 3-month AA-rated financial commercia...
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