5. Using money creation to pay for government spending Consider Kharkeez, a hypothetical country that produces only cakes. In 2019, a cake is priced at $4.00. Complete the first row of the table with the quantity of cakes that can be bought with $900. 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 y calculations result in 1.5 cakes, the answer should be 1 cake. Year 2019 2020 Price of a Cake Cakes Bought with $900 (Dollars) (Quantity) 4.00 Suppose the government of Kharkeez cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government pa money. As a result, the money supply rises by 20% by 2020. 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 $900 in 2020. The impact of the government's decision to raise revenue by printing money on the value of money is known as the

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The theory of absolute advantage was given by Adam Smith in the year 1776.