The National Present-Value Budget Constraint States That

question 55

Multiple Choice

The national present-value budget constraint states that

• A)the present value of consumption plus the present value of government spending is equal to the present value of total income.
• B)savings equals investment.
• C)government spending equals taxes in present value terms.
• D)the credit market clears.
• E)assets equal liabilities for the central bank.

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