Suppose the U.S.Treasury issues $50 billion of 10-year notes over the next month to finance the budget deficit.Describe what should happen to the term structure of interest rates according to each of the following theories:
a. segmented markets
b. pure expectations
c. preferred habitat
d. liquidity preference
What do you think would actually happen?

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The Answer of Suppose the U.S.Treasury issues $50 billion of 10-year notes over the next month to finance the budget deficit.Describe what should happen to the term structure of interest rates according to each of the following theories:
a. segmented markets
b. pure expectations
c. preferred habitat
d. liquidity preference
What do you think would actually happen?