A consumer's budget constraint in the current period is
A) c = y - t.
B) y = c + i + g.
C) y = c - s.
D) c + s = y + t.
E) c + s = y - t.

Question

Quizplus · Accepted Answer

The budget constraint for the current period is given by c + s = y - t. This equation states that the consumer's consumption expenditures (c) plus their savings (s) must equal their disposable income (y) minus any taxes (t) paid in the current period. Therefore, the best choice would be option E.

A Consumer's Budget Constraint in the Current Period Is