Empirical evidence shows that the impact of government budget deficits and surpluses on the equilibrium interest rate is quite large.

Question

Quizplus · Accepted Answer

Empirical evidence generally suggests that the impact of government budget deficits and surpluses on equilibrium interest rates is relatively small, as other factors like monetary policy and global capital flows also play significant roles.

Empirical Evidence Shows That the Impact of Government Budget Deficits