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At the beginning of 2018 the country of Rohan has government debt of $200 mill...

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At the beginning of 2018 the country of Rohan has government debt of $200 million and the real interest rate on this debt is constant and equal to 5 percent per annum.  At the end of 2018 the government intends to repay all government debt and interest. If the government can raise tax revenue of $350 million during 2018, what is the maximum level of government purchases and transfer payments (in millions) it can make in 2018? 

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