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The Fed can reduce money and raise interest rates with anopen market sale of bondsBe able to describe future problems with fiscal policy.oNext for the Fed? Even more deposits are createdoBanks create more loans and checking deposits as they haveextra reservesoDeficit:amount borrowed per year
°Readings from theMacroeconomics Supplement"The 2014 Long-Term Budget Outlook"
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?