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The U.S. Treasury issued inflation-indexed bonds, known as Treasury Inflation Protection Securities (TIPS). Reasons for doing so include: a. the Treasury expected a protracted period
The U.S. Treasury issued inflation-indexed bonds, known as Treasury Inflation Protection Securities (TIPS). Reasons for doing so include: a. the Treasury expected a protracted period of high inflation b. to save the Treasury money c. so that investors could separate exchange rate risk exposure from interest-rate risk exposure d. A and B above e. none of the above
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