Assume that a government has a balanced budget initially but there is no law that requires the government to maintain a balanced budget at all times. Assume further that the government cuts taxes temporarily. This leaves the government with a government budget deficit (G > T or G T > 0), that it must somehow finance. Suppose people think that the government will finance its deficit by printing extra money. What is the overall effect of the above on aggregate output in the short-run? Does the domestic currency appreciate or depreciate against the foreign currency in the short-run? How does this compare with a case where there is a temporary decrease in taxes, keeping all other variables constant? Explain with the help of a figure.