a. How would the budget deficit change in 2022 and 2023 if the Fed moved interest rates

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a. How would the budget deficit change in 2022 and 2023 if the Fed moved interest rates up?

b. How would the budget deficit change in 2022 and 2023 if the Fed’s monetary policy led to a rapid depreciation of the dollar?

The federal deficit will hit $3 trillion in 2021, primarily due to the government response to the pandemic. The deficit is slightly lower than last year but is triple that of 2019.

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Macroeconomics

ISBN: 9780137470822

14th Edition

Authors: Michael Parkin

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Question Posted: Apr 07, 2024 06:51 AM

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a. How would the budget deficit change in 2022 and 2023 if the Fed moved interest rates

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a If the Fed boosts interest rates the government payments on its debt will increa...View the full answer

Macroeconomics

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