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Part B: Fiscal Policy Consider an economy existing for four periods following the government budget constraint as follows: Bt+1 = (1 + i)B+ + Gt
Part B: Fiscal Policy Consider an economy existing for four periods following the government budget constraint as follows: Bt+1 = (1 + i)B+ + Gt - Tt a) Define each of the variables above and explain, in words, why the equality holds. Re-write this budget constraint during each of the four periods that the economy exists
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