Increased short-term borrowing by the U.S. Treasury in recent years has been carried out with objectives of savings in interest costs and a reduction in the size of federal deficits.

Question

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The U.S. Treasury has increased short-term borrowing in recent years as a strategy to take advantage of lower interest rates associated with short-term securities, which can lead to savings on interest costs. Additionally, by managing the debt efficiently and reducing interest expenses, it indirectly supports efforts to reduce the size of federal deficits, although the primary direct method to reduce deficits is through fiscal policy adjustments.

Increased Short-Term Borrowing by the U