Question: (G) Using the period-t budget constraint from above, write down the government's life- time budget constraint and specify the transversality condition that you used to

 (G) Using the period-t budget constraint from above, write down the

government's life- time budget constraint and specify the transversality condition that you

(G) Using the period-t budget constraint from above, write down the government's life- time budget constraint and specify the transversality condition that you used to derive it. Assume that B_1 = 0. (H) Set up the government's maximization problem using p to denote the Lagrange multiplier on the lifetime budget constraint and calculate the relevant FOC(S). (Hint: What is the government maximizing? Reread the problem!) (I) Solve for the level of the optimal tax rate T\

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