What should we expect the result of the large deficit, Microeconomics

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What should we expect the result of the large deficit

Problem

In response to the coronavirus, the federal government passed the CARES Act (Coronavirus Aid, Relief and Economic Securities Act). The CARES Act ended up increasing the government budget deficit by $2 trillion. Use the appropriate models to help answer the following questions:

a) What should we expect the result of this large deficit on interest rates and loanable funds?
b) How should the impact on interest rates end up affecting our price levels and RGDP?

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Microeconomics: What should we expect the result of the large deficit

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Microeconomics: What should we expect the result of the large deficit

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