The government's budget constraint is:
A) Gt + Vt = Tt + (Mt - Mt-1 ) /P
B) Gt + Vt - Tt = (Mt - Mt-1 ) /P
C) -Gt = Vt - Tt, if revenue from money creation is zero.
D) all of the above.
Correct Answer:
Verified
Q10: The biggest category of government purchases in
Q11: The government budget constraint without borrowing is:
A)Gt
Q12: Among the government's uses of funds are;
A)transfer
Q13: The fastest growing part of the Eurozone
Q14: Governments purchases include:
A)defense spending.
B)education spending.
C)social security retirement
Q16: The government's budget is:
A)government purchases plus transfer
Q17: A permanent increase in government purchases increases
Q18: The government budget constraint is:
A)government purchases less
Q19: Since the Great Recession in 2008-09 government
Q20: Government can use its funds to purchase
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