For country A, the present value of all projected future revenues is $400 million and the present value of all projected future spending is $412 million. Country A's fiscal policy is sustainable.

Question

Quizplus · Accepted Answer

The present value of projected future spending is higher than the present value of projected future revenues, indicating that the country is not generating enough revenue to cover its expenses. This suggests that the fiscal policy is not sustainable.

For Country A, the Present Value of All Projected Future