Question

ASSETS LIABILITIES Fill in the above T account based on the following information: ) A colony's assets initially consist of $1,000 taxes receivable. The colony has no other assets and no claims against it. 2) The colony prints $100 of paper bills and gives them away to people in the street 3) The colony prints $200 of paper bills and spends them on a building worth $200 4) The colony lends $300 to a farmer, who uses it to buy a farm. 5) The colony collects $80 of taxes, and burns the $80 paper bills collected. 6) The farmer repays $160 of his debt, and the colony burns the $160 paper bills collected. In cases 2-6, state whether of the action would be likely to be stimulative or recessionary, how this depends on whether or not the economy is cash-starved, and whether or not it

Answer 1

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