This study investigates the impact of the U.S. federal budget deficit on ex ante real long-term interest rates in the U.S. using quarterly data for the period from 1973 through 1995. The study adopts a loanable funds model. Two stage least squares estimates reveal that the federal budget deficit...

The existence of large federal budget deficits in the U.S., especially in recent years, raises the specter of concern regarding their potential effects on real interest rates (as well as economic growth and capital formation). This study provides current and new empirical evidence on the impact...

Assuming that instructors of economics are utility maximizers, they may find it useful to engage in classroom behavior that is likely to generate favorable outcomes with respect to student course evaluations. This is especially true if student course evaluations are used in assessing teaching...