Government budget has been making at a deficit

Assignment Help Macroeconomics

Reference no: EM1335146

Federal Funds rate and the Discount rate

Following is a problem that I have to solve:

GDP growth is approximately 1.5% and has been at that level for two years.
Inflation, as measured by both the CPI and GDP deflator has been at approximately 1-2% for the last two years.
Unemployment has recently moved to 7.3%, up from 7% one year ago, and 6.5% two years ago.
The Federal Funds rate is 3.5%, and the Discount rate is 3.25%.
The Government budget has been operating at a deficit of approximately $60 billion for the last year, up from $50 billion the previous year.

Reference no: EM1335146

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