The government's current period budget constraint is
A) $G + S = B$,
B) $G + B = T$.
C) $G = T + B$.
D) $G + T = B$.
E) $G ^ { \prime } = T ^ { \prime } + ( 1 + r ) B$.

Question

The government's current period budget constraint is 
A) $G + S = B$,
B) $G + B = T$.
C) $G = T + B$.
D) $G + T = B$.
E) $G ^ { \prime } = T ^ { \prime } + ( 1 + r ) B$.

Quizplus · Accepted Answer

The government's current period budget constraint is represented by $G = T + B$, where $G$ stands for government spending, $T$ for taxes, and $B$ for borrowing. This equation shows that the government's expenditures are financed through a combination of taxation and borrowing.

The Government's Current Period Budget Constraint Is A) G+S=BG + S = BG+S=B

The Government's Current Period Budget Constraint Is
A) $G + S = B$