EBK ECONOMICS OF MONEY, BANKING AND FIN
EBK ECONOMICS OF MONEY, BANKING AND FIN
11th Edition
ISBN: 8220101336934
Author: Mishkin
Publisher: PEARSON
Question
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Chapter 5, Problem 10Q
To determine

The effect of a large federal deficit on interest rates

Introduction:

Federal deficit refers to the amount of lag in the government accounts due to increased government expenditure more than its tax receipts. Financial deficit is an indicator of poor financial health in an economy.

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