. Assume a government has a balanced budget. What would happen in the bond market if the government imposes expansionary fiscal policy by increasing spending while maintaining existing tax revenues. Explain your answer.

2. Explain different tools that a government has to impose fiscal policy. Provide two examples that government of Canada used during the COVID-19 pandemic. You can read more about government actions during the pandemic herehttps://www.canada.ca/en/department-finance/economic-response-plan.html

3. Suppose that people expect inflation to be equal 3 percent, but in fact prices rise by 5 percent. Indicate whether this unexpected higher rate of inflation would help or hurt each of the following groups.

a homeowner with a fixed-rate mortgage

a union worker with a fixed labor contract

a company that has invested some of its endowment in government bond which pay fixed rate of return.

4. Why does the Central Bank of Canada have a target for the rate of inflation?In particular, why is it important for the Central Bank to make inflation rates as predictable as possible?

please explain all the answer briefly with accurate answer. i don't want copied material from the previous sources. give justification of all answers