The Government's Intertemporal Budget Constraint Is a Simple Two-Period Case $G _ { 1 } + \frac { G _ { 2 } } { ( 1 + i ) } + ( 1 + i ) B _ { 1 } = 0$

question 88

Multiple Choice

The government's intertemporal budget constraint is a simple two-period case in which:

• A) \(G _ { 1 } + \frac { G _ { 2 } } { ( 1 + i ) } + ( 1 + i ) B _ { 1 } = 0\)
• B) \(G _ { 1 } + G _ { 2 } + ( 1 + i ) B _ { 1 } = T _ { 1 } + T _ { 2 }\)
• C) \(G _ { 1 } + \frac { G _ { 2 } } { ( 1 + i ) } + ( 1 + i ) B _ { 1 } = T _ { 1 } + \frac { T _ { 2 } } { ( 1 + i ) }\)
• D) \(\frac { G _ { 1 } } { ( 1 + i ) } + G _ { 2 } + ( 1 + i ) B _ { 1 } = T _ { 1 } + \frac { T _ { 2 } } { ( 1 + i ) }\)
• E) \(G _ { 1 } + G _ { 2 } = T _ { 1 } + T _ { 2 }\)

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