Parliament votes a special one-time $1 billion transfer to bail out the buggy whip industry. Tax collections

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Parliament votes a special one-time $1 billion transfer to bail out the buggy whip industry. Tax collections do not change, and no change is planned for at least several years. By how much will this action increase the overall budget surplus and the primary surplus in the year that the transfer is made? in the next year? in the year after that? Assume that the nominal interest rate is constant at 10%.
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Macroeconomics

ISBN: 978-0321675606

6th Canadian Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

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