What impact would budget have on interest rates


Problem

Several politicians have suggested that the federal government should run a sizable budget surplus during the next decade in order to "save Social Security." If the federal government ran a sizable budget surplus in the years immediately ahead, what impact would this have on interest rates, the inflow of capital, the current-account deficit, and the foreign exchange value of the dollar? Explain the reasoning underlying your answer.

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.

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Macroeconomics: What impact would budget have on interest rates
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