The demand for U.S. government bonds is high relative to other bond issues because:

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The market for U.S. government bonds is more liquid than most, if not all, other bond markets. This means that these bonds are more easily traded and have higher demand, which results in lower transaction costs and a more efficient market. This high level of liquidity makes U.S. government bonds attractive to investors, as they can buy and sell them quickly without incurring significant costs. The other choices are not accurate, as other bond issues could be less liquid, and the U.S. government bonds have a very low default risk compared to other bonds.

The Demand for U