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.

---

Definitions:

Gordon Bower

An influential psychologist known for his research in human memory, emotion, and the structure of cognitive systems.

Mnemonic Devices

Methods an individual can employ to enhance their memory and recall abilities.

Categorized Words

Words that have been sorted into groups based on shared characteristics or meanings.

ZIP Code

A postal code used by the United States Postal Service to ensure that mail is delivered to the correct geographical area.