The government has an initial debt measured by BO which it must pay back to households at the price of $ 1 bond at the end of the first period. Then, in each period, he spends PtGt $, t = 1, 2 and levies taxes for an amount of PtTt $, t = 1, 2. The government can contract debt again at the end of the first period by issuing B new bonds at a price of $ PB which it will have to repay at the end of the second period at the price of $ 1 the bond. (i) Write each constraint in nominal terms and then in real terms, using the classic relationship between the price of bonds and the nominal interest rate, i.e. PB = 1/1 + i (ii) Write the government's intertemporal budget constraint The government has an initial debt measured by BO which it must pay back to households at the price of $ 1 bond at the end of the first period. Then, in each period, he spends PtGt $, t = 1, 2 and levies taxes for an amount of PtTt $, t = 1, 2. The government can contract debt again at the end of the first period by issuing B new bonds at a price of $ PB which it will have to repay at the end of the second period at the price of $ 1 the bond. (i) Write each constraint in nominal terms and then in real terms, using the classic relationship between the price of bonds and the nominal interest rate, i.e. PB = 1/1 + i (ii) Write the government's intertemporal budget constraint