G) Rewrite the expression for deficits with only terms at time t. H) Define a competitive equilibrium for this economy. Suppose the government chooses z and lets D adjust to satisfy the government BC. Also assume that the regulatory constraint is binding . This case is known as the Ricardian Regime. I) What happens with D if the monetary authority raises its policy interest rate R? J) For a given interest rate policy, what happens with D if there is an increase in the regulatory demand for Treasury securities o? Suppose the government chooses D and lets z adjust to satisfy the government BC. Discuss the cases when the regulatory constraint binds and does not bind. This case is known as the non-Ricardian Regime. K) What happens with inflation if the monetary authority raises its policy interest rate R? L) What happens with inflation if there is a flight to quality represented by decrease in the productivity of capital A?Question 4 - Some unpleasant monetarist arithmetic (35 points). Consider an OLG economy with the following charachteristics: The population is constant and consists of two period-lived individuals. There is an initial old generation that lives for one period only. For notational simplicity, we can normalize the population so N = 1. An individual born at date 15 have linear preferences and only values consumption at date 15+ 1 :> \"(01m C2,t+1) : 62\". Each young person is endowed with :9 units and may invest in capital kt wchich ill return in the next period according to the production function A( f (kt) Assume that f is increasing and strictly concave and that 0