Question 3 - Government Debt and Investment (25 points). Suppose the government debt of 100 goods in period t finances a government capital not the tax cut of the example we've seen in class but a government capital project that will pay off 100r9 goods in t+1. At that time, the government retires the debt. Assume that the returns from the capital project are used to reduce the taxes of the old person in t + 1A) How large must be r9 so that the next generation need not pay extra taxes to retire the debt? B) What Will the effect of the debtnanced capital project be on the consumption, savings and privately owned capital of the people born in period t if r9 = 3:? C) What will the effect of the debtnanced capital project be on the consumption, savings and privately owned capital of the people born in period t if r9 > 55