Suppose tax revenues equal ($100) billion, government spending equals ($130) billion, and the government borrows ($25) billion.
Question:
Suppose tax revenues equal \($100\) billion, government spending equals \($130\) billion, and the government borrows \($25\) billion. How much do you expect the money supply to increase, given the government budget constraint?
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To determine the expected increase in the money supply we can use the government bu...View the full answer
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