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Explain Using a Diagram How the "Flight to Quality" After

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Essay

Explain using a diagram how the "flight to quality" after the Subprime collapse lead to a rising spread between lower-quality (BBB-rated) and highest-quality (AAA-rated) bonds.


Definitions:

Spaghetti

A type of pasta originated from Italy, typically made from durum wheat and water, and known for its long, thin, cylindrical shape.

Unconditioned Stimulus

is a stimulus that naturally and automatically triggers a response without the need for prior learning.

Lover's Lane

Lover's Lane traditionally refers to a secluded area where people engage in romantic activities.

Chanel #5

A classic and highly influential fragrance created by the French fashion house Chanel in 1921.

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