The government's present value budget constraint states that
A) taxes must equal government spending in each period.
B) the present value of government spending must be equal to the present value of consumers' disposable incomes.
C) the present value of government spending must be equal to the present value of taxes.
D) the government may run deficits each and every year, as long as the deficits are sufficiently small.
C
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A firm that has two or more owners who share decision-making power as well as the firm's profits is called
A) a corporation. B) a joint-stock company. C) a partnership. D) a non-profit organization. E) a single proprietorship.
Which of the following would be an appropriate discretionary fiscal policy to use when the economy is in a recession?
a. Increased government spending. b. Higher taxes. c. A balanced-budget reduction in both spending and taxes. d. An expansion in the money supply.