10. Using money creation to pay for government spending

Consider Kharkeez, a hypothetical country that produces only burritos. In 2016, a burrito is priced at $1.00.

Complete the first row of the table with the quantity of burritos that can be bought with $100.

Hint: In this problem, assume it is not possible to buy a fraction of a burrito, and alwaysround downto the nearest whole burrito. For example, if your calculations result in 1.5 burritos, the answer should be 1 burrito.

Year	Price of a Burrito	Burritos Bought with $100
(Dollars)	(Quantity)
2016	1.00
2017

Suppose the government of Kharkeez cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 30% by 2017.

Assuming monetary neutrality holds, complete the second row of the table with the new price of a burrito and the new quantity of burritos that can be bought with $100 in 2017.

The impact of the government's decision to raise revenue by printing money on the value of money is known as the .