When investor confidence in the economy is increasing, a technical analyst would anticipate that:
yields on AAA-rated bonds will be higher than those on BBB-rated bonds.
yields on BBB-rated bonds will be higher than those on AAA-rated bonds.
the spread between yields on AAA-rated and BBB-rated bonds will increase.
the spread between yields on AAA-rated and BBB-rated bonds will decrease.
A) I and IV.
B) II and III.
C) II and IV.
D) I and III.
Answer: C) II and IV.