Question 2.6 Now think about what happens in the following period. After the govern- ment inated away part of the debt by using money growth rate 934 > 0 instead of the promised 9M = O, investors will now believe that in the following period, the money growth rate will continue to be 934 = 0. How can the government fool investors again? How can this lead to a hyperination, and what can the government do to avoid such hyperinationary periods