The size of the federal budget deficit increased sharply in 2010 due to (1) the stimulus package
Question:
a. If households are forward-looking, what effect will increased budget deficits have on their spending and saving choices?
b. Comment on how these spending and saving choices might affect the effectiveness of the stimulus package.
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Related Book For
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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