The Intertemporal Budget Constraint means
A) The Government budget must be in balance in the long run
B) The primary budget deficit should be zero
C) Government spending must be equal to government revenue in each period
D) The stock of debt today must equal the present value of future government surpluses
E) The stock of debt today must equal the present value of future government primary surpluses

Question

Quizplus · Accepted Answer

The Intertemporal Budget Constraint states that the current stock of debt must equal the present value of future government primary surpluses, ensuring that the government can meet its debt obligations over time.

The Intertemporal Budget Constraint Means