Suppose that, due to drastic cuts in federal spending and strong economic growth, it now appears that the federal government will experience a $100

Suppose that, due to drastic cuts in federal spending and strong economic growth, it now appears that the federal government will experience a $100 billion budget surplus in its cash account at the Federal Reserve. It will use the balance to retire $100 billion in government securities. what would be some of the possible effects of this debt retirement operation on the economy and the financial markets?

Suppose that, due to drastic cuts in federal spending and strong economic growth, it nowappears that the federal government will experience a $100 billion budget surplus in its cashaccount at the…

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