In the aftermath of the global financial crisis, U.S. government budget deficits increased dramatically, yet interest rates

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In the aftermath of the global financial crisis, U.S. government budget deficits increased dramatically, yet interest rates on U.S. Treasury debt fell sharply and stayed low for many years. Does this make sense? Why or why not?

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Financial Markets And Institutions

ISBN: 9780138043681

10th Edition

Authors: Frederic S Mishkin, Stanley Eakins

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Question Posted: Apr 08, 2024 02:01 AM

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In the aftermath of the global financial crisis, U.S. government budget deficits increased dramatically, yet interest rates

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Yes it does make sense and this phenomenon can be explained by several factors Flight to Safety During times of economic uncertainty investors often s...View the full answer

Financial Markets And Institutions

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