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    INSTRUCTIONS PAGE 2/5
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		<u><b>Government debt </b></u><br><br>
		In the first period of each round, the Government starts with a level of debt of <b>2500 EC</b>, which it tries to finance by issuing (selling) bonds at different prices. <br><br>
		Bonds are sold at the beginning of a period and are paid back at the end of the period.<br><br>
		A bond has a face value of <b>1 EC</b>. This means that any holder of one bond expects to receive 1 EC at the end of the period.<br><br>
		Bonds can be purchased at the prices listed in the table below. The lower the price offered, the higher is the return (gain of the investor). <br><br>
		
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		If the Government is successful in selling enough bonds to cover its beginning of period level of debt, then in the next round its new level of debt will be the sum of the number of bonds issued minus the government income: <br><br> 
		
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		Government income is a number randomly drawn from an interval [-250, 250]. <br><br>
		This means that government debt grows over time as the government needs to pay interest on the bonds issued (it sells at a price lower or equal to 1 EC and it pays back 1 EC to investors) and might decline if government income is higher than the interest it pays on the bonds. <br><br>
		
		<b><u>Example: </b></u> <br><br>
		In the first period, the Government needs to raise 2500 EC. To cover this amount, the Government sells 1000 bonds at the price of 0.95 (raising 950 EC) and 1824 bonds at price 0.85 (raising approx. 1550 EC).  Suppose the Government income is 50. Then debt in the next period is 1000+1824-50= 2774. <br><br>
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