Attempts Keep the Highest / 2 10. Using money creation to pay for government spending Consider Snackistan, a hypothetical country that produces only cakes. In 2016, a cake is priced at $2.00. Complete the first row of the table with the quantity of cakes that can be bought with $900. 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 $900 Year (Dollars) (Quantity) 2016 2.00 2017 Suppose the government of Snackistan cannot 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 40% by 2017. 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 $900 in 2017. The impact of the government's decision to raise revenue by printing money on the value of money is known as the