Question 1:

Please consider the chart below:

Effective Federal Funds Rate 2 0 4 5 6 1/1/2007 7/1/2007 4.7 1/1/2008 5.26 7/1/2008 1/1/2009 7/1/2009 1/1/2010 7/1/2010 9.9 1/1/2011 7/1/2011 1/1/2012 7/1/2012 Federal Funds Effective Rate 1/1/2013 7/1/2013 1/1/2014 7/1/2014 1/1/2015 7/1/2015 1/1/2016 7/1/2016 1/1/2017 7/1/2017 1/1/2018 Unemployment Rate 7/1/2018 1/1/2019 1.58 3.5 7/1/2019 1/1/2020 7/1/2020 1/1/2021 14.7 7/1/2021 3.9 0.08 1/1/2022 0 2 8 4 6 12 10 14 16 Unemplent Rate\fFRED - Federal Debt Held by Federal Reserve Banks 4,080 Plier of Dalan 3,090 21060 2049 2410 2412 2010 2015 2017 2418 Shaded areas indicate U.S. recessions. Source: U.S. Department of the Treasury, Fiscal Service fred stoutsfed org\fA big question for Ms. Yellen: How much debt is too much? In the past four years, U.S. government debt held by the public has increased by $7 trillion to $21.6 trillion. At 100.1% of gross domestic product, the debt already exceeds the annual output of the economy, putting the U.S. in company with economies including Greece, Italy and Japan, Kate Davidson and Jon Hilsenrath write.Act Big' Janet Yellen, President-elect Joe Biden's choice for Treasury secretary, plans to tell lawmakers that the U.S. risks a longer, more painful recession unless Congress approves more aid and urge them to "act big" to shore up the recovery. Ms. Yellen is set to testify Tuesday before the Senate Finance Committee, which is considering her nomination. "Economists don't always agree, but I think there is a Consensus now: Without further action, we risk a longer, more painful recession now-and long-term scarring of the economy later," Ms. Yellen will say. Mr. Biden's nomination of Ms. Yellen positions the 74-year-old labor economist to lead his administration's efforts to advance the recovery from the destruction caused by the coronavirus pandemic and related shutdowns. She will also play a key role in pushing the administration's economic agenda on Capitol Hill, Kate Davidson reports.Federal debt held by the public as a share of gross domestic product 200% Forecast 175 150 125 100 Actual 75 50 25 1900 2000 Source: Congressional Budget OfficeFederal spending on interest as a share of gross domestic product 3.5% 3.0 25 Forecast 20 Actual 15 10 05 1962 65 75 "80 '85 95 2000 05 10 15 20 '30 Source: Congressional Budget Office