on September 21, 1995," house speaker Newt Gingrich threatened to spend the united state into default on its debt for the first time in the nation's history, to force the clinton administration to balance the budget on republician terms" (new york time september 22, 1995). that same day the interest rate on 30 year us government bonds rose from 6.46 to 6.55 percents, and the dollar fell in value from 102.7 to 99.0 yen. use the model of the large open economy to explain this events.

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ANSWER His statement will have no effect on the components of demand in the economy like Consumptio... View the full answer