Question

In 2010 the U.S. government was running a large deficit. Some were concerned that pressures might be put on the Federal Reserve to purchase government bonds to help the government finance this deficit. If the Fed were to buy government bonds to help the government finance its expenditures, then?

Answer 1

If the federal reserve buys the government bonds, it indicates that the money needed to support cats was entered, easing the deficet a little but it generates that the government debt grows and in a near time a deficit arises again because they have to pay the interest of the bonds and the debt he acquired

Step-by-step explanation: