Problem
1. Would a government deficit be more expansionary if it were financed by borrowing from the Federal Reserve rather than the general public? Explain.
2. "Inflation helps the debtor class. People who have borrowed money can pay it back with dollars that have depreciated in value. Since the poor usually owe money to the rich, inflation is to their advantage." Evaluate. Is the statement true if both debtor and creditor anticipate the inflation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.