Question 4 (20 points) Suppose that the government decides that the use of credit cards is bad and introduces a tax on credit card services. That is, if a consumer or firm holds a credit card balance of X (in real terms), he or she is taxed tX, where t is the tax rate. Determine the effect on the market of Credit card services and the money market. Explain using diagrams Question 5 (20 points) In the monetary intertemporal model, suppose that the money supply is fixed for all time, and that there is a decrease in the capital stock, brought about by a war or natural disaster. Assume that any that for any function of two or more variables, the effect of an ambiguous change in one variable is outweighed by the effect of an unambiguous change in any other variable. Determine the effect on the macroeconomic variables. Explain using diagrams. Question 4 (20 points) Suppose that the government decides that the use of credit cards is bad and introduces a tax on credit card services. That is, if a consumer or firm holds a credit card balance of X (in real terms), he or she is taxed tX, where t is the tax rate. Determine the effect on the market of Credit card services and the money market. Explain using diagrams Question 5 (20 points) In the monetary intertemporal model, suppose that the money supply is fixed for all time, and that there is a decrease in the capital stock, brought about by a war or natural disaster. Assume that any that for any function of two or more variables, the effect of an ambiguous change in one variable is outweighed by the effect of an unambiguous change in any other variable. Determine the effect on the macroeconomic variables. Explain using diagrams