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Question: consider snackistan a hypothetical country that produces only cakes in...

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Consider Snackistan, a hypothetical country that produces only cakes. In 2016, a cake is priced at $1.00. Complete the first row of the table with the quantity of cakes that can be bought with $100. Hint: In this problem, assume it is not possible to buy a fraction of a cake, and always round down to the nearest whole cake. For example, if your calculations result in 1.5 cakes, the answer should be 1 cake. Year 2016 2017 Price of a Cake (Dollars) 1.00 Cakes Bought with $100 (Quantity) Suppose the government of Snackistan cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 30% by 2017. Assuming monetary neutrality holds, complete the second row of the table with the new price of a cake and the new quantity of cakes that can be bought with $100 in 2017. The impact of the governments decision to raise revenue by printing money on the value of money is known as the Grade It Now Save & Continue Continue without saving

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