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Discuss the impact of this policy on interest rates

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Question - The Fed attempts to use monetary policy to control the level of inflation and economic growth in the United States. Write a short essay on how the government's fiscal policy can make the Fed's role more difficult. Specifically, assume that the administration plans to implement a new program that will expand the government benefits provided to most people in the country. The new program will likely increase the budget deficit. Discuss the impact of this policy on interest rates, and explain how this makes the Fed's role more challenging.

Reference no: EM132912334

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