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The Economic Meaning of the Intertemporal Budget Constraint Is That

Question 53

Multiple Choice

The economic meaning of the intertemporal budget constraint is that:


A) the government's budget never has to balance.
B) the government's budget must balance period by period.
C) the present discounted value of the government's budget must balance.
D) the government can always push its debt on future generations.
E) every generation faces the same tax schedule.

Correct Answer:

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