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Many People Are Worried That, with the Growing Number of People

Question 122

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Many people are worried that, with the growing number of people that will retire in the US over the next 40 years, the federal government will need to borrow large amounts of money to finance the Social Security System. If we assume that Social Security taxes and the current eligibility age remain constant, explain the likely impact this will have on bond markets.

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If the Social Security Administration (S...

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