Let the real high-powered money h p equal 4585 billion and, Ask an Expert

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Let the real high-powered money (H / P), equal $4,585 billion, and the real government bond (B / P) equal $3,150 billion.

If the rate of inflation is 5.5%, what is the amount of seigniorage (inflation tax)?

What is the real interest rate if the nominal interest rate is 8.5%?

Calculate the amount of real interest on government bonds.

What should be the maximum amount of government budget deficit to keep the real value of bonds and real high-powered money fixed?

If real government spending is $1500 billion, how much real taxes (net of transfer payment) must government collect to keep the real value of bonds and real high-powered money fixed?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92744147

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