The Economic Meaning of the Intertemporal Budget Constraint Is That

question 41

Multiple Choice

The economic meaning of the intertemporal budget constraint is that:

• A) the government's budget never has to balance.
• B) the government's budget must balance period by period.
• C) the present discounted value of the government's budget must balance.
• D) the government can always push its debt on future generations.
• E) every generation faces the same tax schedule.

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Definitions:

Income

Income is the amount of money or assets that is received over a period of time, often as payment for work, from investments, or from business activities.

Total Utility Data

Information representing the total satisfaction or benefit received by consuming a specific quantity of goods or services.

Prices

The amount of money required to purchase a good or service, determined by factors like demand, supply, and market conditions.

Income

The money received, especially on a regular basis, for work or through investments.