What is the real deficit in year one
Suppose the federal government runs a $200 billion deficit in year 1 that increases the public debt from $2,000 billion to $2,200 billion by year's end. During year 1 the price level rises by 10 percent. What is the "real" deficit in year 1.
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The public debt from $2,000 billion to $2,200 billion by year's end. During year 1 the price level rises by 10 percent. What is the "real" deficit in year 1.
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The required reserve ratio is 10%. How great an open market purchase or sale of securities should the central bank undertake to restore the original interest rate i.e. what is the values of purchase/sale of bonds?
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