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Assume that a country produces an output Q of 50 every year. The world interest rate is 10%. The country currently plans a consumption level

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Assume that a country produces an output Q of 50 every year. The world interest rate is 10%. The country currently plans a consumption level C equal to 50 every year, and l = G = 0. There is then an unexpected war in year 0, which costs 22 units and is predicted to last one year. If the country desires to smooth consumption, by how much would consumption need to decrease? How much should the country in the question above borrow in period 0

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