The Long-Run Budget Constraint Will Be Met as Long As

question 123

Multiple Choice

The long-run budget constraint will be met as long as:

• A) a nation limits its borrowing to half the outstanding debt.
• B) the present value of GDP is the same as the present value of yearly consumption.
• C) a nation's productivity grows along with its population.
• D) the government is stable and external shocks are minimal.

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Definitions:

Limited Partner

An investor in a partnership who is not directly involved in its daily operations and whose liability is limited to the amount invested.

Capital Contribution

Funds or assets provided by owners or shareholders to increase a company's equity.

Partners' Interests

Refers to the stakes or shares that partners have in a partnership, encompassing financial investment, management decisions, and profit-sharing.

Provincial Legislation

Laws and regulations enacted by the legislative bodies of provinces or states within a country.