If We Assume That $T r _ { t } = \Delta M _ { t } = 0$

question 5

Multiple Choice

If we assume that $T r _ { t } = \Delta M _ { t } = 0$ , which of the following represents the government's budget constraint?

• A) \(G _ { t } + i B _ { t } = T _ { t } + \Delta B _ { t }\)
• B) \(B _ { t } + 1 = ( 1 + i ) B _ { t } + G _ { t } - T _ { t }\)
• C) \(G _ { t } = T r _ { t }\)
• D) \(G _ { t } = T _ { t }\)
• E) \(B _ { t + 1 } = ( 1 + i ) B _ { t } + G _ { t }\)

---

Definitions:

Sales Volume

The quantity of goods or services sold or delivered in a given period.

Sensitivity Analysis

A way of assessing how the modification of an independent variable's values affects a dependent variable, under a specific set of hypotheses.

Rate Of Return

The positive or negative change in an investment's value over a certain period, expressed in terms of a percentage of the investment’s beginning cost.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable.