An article in the Economist magazine in 2012 observed: America can now borrow from the bond market

Question:

An article in the Economist magazine in 2012 observed:

“America can now borrow from the bond market at a cheaper rate than at any time in the history of the republic.” Use the loanable funds model to analyze how this statement could be true even though the United States was running a large budget deficit in 2012.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: