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We Have Heard the Predictions Regarding the Large Number of People

Question 127

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We have heard the predictions regarding the large number of people that will be retiring over the next 25-50 years and the strain this is going to place on the federal budget. Assuming that federal borrowing will have to increase, what is the likely impact going to be on the risk and term structure (if any) of interest rates and why?

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Increased borrowing by the U.S. Treasury...

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