Need help with this problem, both screenshots are related.

Question 1 Consider the consolidated government budget constraint Be-1 S tits - gets + 5 STtts II (1 + rits ) 8 0 ( 1 + rits ) 8=1 8=1 In steady state, Tits = r for all s tits - gits = t - g for all s STits = sr for all s We also assume that the rate of growth of money supply is f, constant each period. Finally, assume that Pr = 1 (Note: This doesn't mean that prices are constant over time) With these simplifications, the steady state budget constraint can be written as Bi-1 = 2 ST 3=0 ( 1+ ( 1 + r ) " Further suppose that By-1 = $14 trillion and that the steady state value of real money balances Mets - $2 trillion for all s Pits One final formula you will need is that for the sum of a geometric series: for r