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An Implication of the Intertemporal Budget Constraint Is That

Question 59

Multiple Choice

An implication of the intertemporal budget constraint is that:


A) the government can borrow only as much as it can credibly pay back.
B) the government can borrow as much as it wants.
C) the government must always have a balanced budget.
D) the government must balance its budget over the business cycle.
E) all generations pay the same amount of taxes.

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