Answer entire question seen in picture below:Last blank answer choices:fisher effect,classic dichotomy, inflation tax,velocity of money

3. Using money creation to pay for government spending Consider Tralfamadorian country that produces only cakes. In 2018, a cake is priced at $4.00. Complete the first row of the table with the quantity of cakes that can be bought with $700. Hint: In this problem, assume it is not possible to buy a fraction of a cake, and always round down to the nearest whole cake. For example, if your calculations result in 1.5 cakes, the answer should be 1 cake. Price of a Cake Cakes Bought with $700 Year (Dollars) (Quantity) 2018 4.00 2019 Suppose the government of Tralfamadoriannot 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 20% by 2019. Assuming monetary neutrality holds, complete the second row of the table with the new price of a cake and the new quantity of cakes that can be bought with $700 in 2019. The impact of the government's decision to raise revenue by printing money on the value of money is known as the Grade It Now Save & Continue