The Government's Present Value Budget Constraint States That

question 27

Multiple Choice

The government's present value budget constraint states that

• A)the government may run deficits each and every year, as long as the deficits are sufficiently small.
• B)the present value of government spending must be equal to the present value of consumers' disposable incomes.
• C)governments can increase spending as long as deficits are financed by issuing debt.
• D)the present value of government spending must be equal to the present value of taxes.
• E)taxes must equal government spending in each period.

---

Definitions:

Ribosome-mRNA-Polypeptide Complex

A cellular structure in which ribosomes, mRNA, and a growing polypeptide chain come together during protein synthesis.

Rough ER

A part of the endoplasmic reticulum with ribosomes attached to its surface, involved in protein synthesis and folding.

Initiator tRNA

A specialized transfer RNA that is charged with the amino acid methionine in eukaryotes (or a formylmethionine in prokaryotes) and plays a crucial role in the initiation of protein synthesis.

Start Codon

The codon AUG, which signals the beginning of translation of messenger RNA. Compare with stop codon.