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(b) The government begins running an unanticipated deficit that grows by 20% each year. The initial budget deficit in year 2 is equal to $800
(b) The government begins running an unanticipated deficit that grows by 20% each year. The initial budget deficit in year 2 is equal to $800 billion. Calculate the central bank's reserves, money supply, and backing ratio for years 1 through 5
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