1. The United States is approaching federal government debt as a percent of GDP at levels not seen since WW II. First, briefly explain the major concern - for your grandchildren - of the historically large federal debt. Second, briefly explain what would have been the major concern - for your grandchildren - if the massive increase deficit spending had not occurred.

2. In January 2022, the Federal Reserve announced that it would begin increasing the target Fed Funds interest rate. Why did the Federal Reserve decide to do this? In your answer, please discuss at least three macroeconomic indicators that contributed to this decision.