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When the u.s. treasury issues new bonds to replace bonds that have matured, it is engaging in discretionary fiscal spending. income transfers. debt servicing. debt refinancing?

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User Aung
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1 Answer

6 votes
When the U.S. treasury issues new bonds to replace bonds that have matured, it is engaging in debt refinancing. When you refinance something you are replacing existing debt with new debt, this is for the same object but under new terms. Depending on your credit, often times the interest will go down and/or your payments will be lowered. When the U.S. treasury issues new bonds to replace old ones they are refinancing the debt.
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User DCMaxxx
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