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With a ever growing government budget deficit, the Federal Reserve will eventually have pressure from the government to take action. If we use the investment-savings

With a ever growing government budget deficit, the Federal Reserve will eventually have pressure from the government to take action. If we use the investment-savings −Liquidity and Money − full employment line model to illustrate the effects of a government budget deficit and what the Federal Reserve can do to counter the consequences of a budget deficit. In the long run what happens to interest rate?

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