The Fed can reduce money and raise interest rates with an open market sale of

The fed can reduce money and raise interest rates

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The Fed can reduce money and raise interest rates with an open market sale of bonds Be able to describe future problems with fiscal policy. o Next for the Fed? Even more deposits are created o Banks create more loans and checking deposits as they have extra reserves o Deficit: amount borrowed per year
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° Readings from the Macroeconomics Supplement "The 2014 Long-Term Budget Outlook"
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oWhat happened to federal budget deficits and the federal debt between 2009 and 2012? What do you think might have been the cause? oWhat is the forecast for the federal debt, as a percent of GDP, in the years to 2039? oWhat is the forecast for the federal deficit to 2018? After 2018?
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