Methods of Financing Government Spending Are Described by an Expression

question 4

Multiple Choice

Methods of financing government spending are described by an expression called the government budget constraint,which states the following

• A)DEFICIT = (G - T)= ΔMB + ΔBONDS.
• B)DEFICIT = (G - T)= ΔMB - ΔBONDS.
• C)DEFICIT = (G - T)= ΔBONDS - ΔMB.
• D)DEFICIT = (G - T)= ΔMB/ΔBONDS.

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Definitions:

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