2. Former German Minister Schauble was viewed as a budget hawk. Under his stewardship, the country went from having a public deficit to a surplus. German growth under Schauble ... .. and how the budget was balanced Annual % change In gross domestic product Adjusted taxable Income minus adjusted during his time as finance minister government spending (Ebn) 4 50 N -2 -50 -4 -6 -100 2009 10 11 12 13 14 15 16 17 2009 10 11 12 13 14 15 16 17 Sources: Eurostat; Germany's Federal Agency for Civic Education OFT Given that and the data for Germany for 2019 below, answer the following questions: Germany 2019 Government Bond 10Y (%) 0.32 GDP Growth Rate (%) 0.4 GDP Annual Growth Rate (%) 1.7 Unemployment Rate (%) 4.2 Inflation Rate (%) 2 Interest Rate (%) 0.75 Government Debt to GDP (%) 60.1 Government Budget (% of GDP) 1 Corporate Tax Rate (%) 29.79Personal Income Tax Rate 1%! 47.5 a) Would you recommend that Germany back the new plan of the European Central Bank of a new policy of easing lending conditions by increasing liquidity and funds available for commercial banks during the covid19 crisis? Explain what should happen in the loanable funds market if the plan is approved. b) Now assume that there are further adverse shocks in consumer expectations. Draw the simultaneous effects on the credit, money and goods and services markets. Would your answer to a) change? c) Would an inflation target by the European Central Bank be a barrier to the policies you chose