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5. Assume that people face a lumpsum tax of 7' goods when old and a growth rate of money supply of z > 1. The

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5. Assume that people face a lumpsum tax of 7' goods when old and a growth rate of money supply of z > 1. The tax and the newly created money are used to nance govern ment purchases of g goods per young individual in very period. There are N individuals in every generation. (3.) Find the individual's budget constraints when young and when old. Combine them to form the individual's lifetime budget constraint and graph this constraint. (b) Find the government's budget constraint. (c) Graph the stationary monetary equilibrium. ((1) Find the stationary monetary equilibrium when 2: = l and add it to the graph in

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