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) \(B _ { t + 1 } = ( 1 + i ) B _ { t } + G _ { t }\)

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