Question: A perennial debate is whether federal budget deficits lead to

A perennial debate is whether federal budget deficits lead to higher interest rates. The follow-ing table gives some historical data on deficits and interest rates. For each year, the deficit is the difference between revenues and expenditures measured in current dollars; a negative figure is a deficit, and a positive figure is a surplus.
On the basis of these data, what inference could you make about the relationship between federal deficits and interest rates? Explain why inferences based on these data alone might be problematic.

View Solution:


Sale on SolutionInn
Sales0
Views105
Comments
  • CreatedMarch 25, 2015
  • Files Included
Post your question
5000