14. During 2020-2021, the Biden administration dramatically increased government spending to combat the Covid-19 crisis

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14 During 2020 2021 The Biden Administration Dramatically Increased Government Spending To Combat The Covid 19 Crisis 1 (35.19 KiB) Viewed 31 times

14. During 2020-2021, the Biden administration dramatically increased government spending to combat the Covid-19 crisis without raising taxes. (a) With the aid of some graphs, explain how you expect these policies to affect the exchange rate and net exports. (b) Using data from FRED, explain if your predictions are consistent with the facts? You can show graphs of government spending, the deficit, net exports and the real exchange rate. If your prediction does not match the data, using what you have learned, can you explain where the difference could be coming from.