The government's present value budget constraint states that A. the present value of government spending must...
The government's present value budget constraint states that
| A. |
the present value of government spending must be equal to the present value of consumers' disposable incomes. |
|
| B. |
the present value of government spending must be equal to the present value of taxes. |
|
| C. |
the government may run deficits each and every year, as long as the deficits are sufficiently small. |
|
| D. |
taxes must equal government spending in each period. |
Homework Answers
B is right option,
the present value of government spending must be equal to the present value of taxes.
government budget is defined as the budget of the government that is the annual financial statement which is describing in detail the estimated all receipts and proposed all expenditure and disbursements of the government under various heads for the fiscal year (1st April to 31st March)
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The government's present value budget constraint states that
A.
the present value of government spending must...
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