How much must the government borrow

Reference no: EM131347317

If tax revenues equal $100 billion, government spending equals $130 billion, and the government borrows $25 billion, how much do you expect the money supply to increase given the government budget constraint? If the government budget deficit equals $220 billion, and the money supply increases by $100 billion, how much must the government borrow?

Reference no: EM131347317

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