Problem
On March 26, 2010, the Wall Street Journal reported the following: "A sudden drop-off in investor demand for U.S. Treasury notes is raising questions about whether interest rates will finally begin a march higher [...]. [...] there are signs the spotlight is turning to the ability of the U.S. to finance its own budget deficit."16
a) Explain the effect of higher Treasury note interest rates on the government deficit.
b) What would be the long run effect of distrust in the U.S. government's ability to finance its own deficit?
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.