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QUESTION

Among the concerns that were raised during a hearing in Congress was the possibility that foreign governments would stop buying U.

Among the concerns that were raised during a hearing in Congress was the possibility that foreign governments would stop buying U.S. Treasury bonds, a practice used by governments to prevent their currencies from appreciating against the U.S. dollar. Use the model of supply and demand to describe the Treasury bond market and to predict the direction of quantity and price in this case.

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