The government's intertemporal budget constraint assumes that the budget is:

Question

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The intertemporal budget constraint assumes that the government's budget is balanced in the last period. This means that the government is able to finance its level of spending over time, without resorting to excessive borrowing or running persistent budget deficits. In other words, the government is able to make investments in the present that will generate future economic growth, without placing an unsustainable burden on future generations.

The Government's Intertemporal Budget Constraint Assumes That the Budget Is