An Implication of the Intertemporal Budget Constraint Is That

question 86

Multiple Choice

An implication of the intertemporal budget constraint is that:

• A) the government can borrow only as much as it can credibly pay back.
• B) the government can borrow as much as it wants.
• C) the government must always have a balanced budget.
• D) the government must balance its budget over the business cycle.
• E) all generations pay the same amount of taxes.

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Definitions:

Women

Female adults; in the context of health and social sciences, often the subject of specialized studies owing to gender-specific health, social, or psychological issues.

Negative Feelings

Unpleasant emotions such as sadness, anger, and fear that may affect an individual's psychological well-being.

Coping

The process of actively managing and attempting to overcome personal and interpersonal issues and stress.

Mood Disorders

Psychiatric disorders that are primarily characterized by changes in mood, such as depression and bipolar disorder, affecting daily functioning.