Concerns about the ability of the U.S. government to finance its own budget deficit might lead to

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Concerns about the ability of the U.S. government to finance its own budget deficit might lead to higher interest rates on U.S Treasury securities.

a) Explain the effect of higher interest rates on Treasury securities on the government deficit.

b) What would be the long run effect of distrust in the U.S. government’s ability to finance its own deficit?

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Macroeconomics Policy And Practice

ISBN: 978-0133424317

2nd Edition

Authors: Frederic Mishkin

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Question Posted: Feb 20, 2024 04:00 AM

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Concerns about the ability of the U.S. government to finance its own budget deficit might lead to

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a Higher interest rates on US Treasury securities affect the government deficit primarily through in...View the full answer

Macroeconomics Policy And Practice

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