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    Macroeconomics Study Set 4
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    Exam 9: A Two-Period Model: The Consumption–Savings Decision and Credit Markets
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    The Government's Future Period Budget Constraint Is
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The Government's Future Period Budget Constraint Is

Question 26

Question 26

Multiple Choice

The government's future period budget constraint is


A) G' + (1 + r) B = T'.
B) G' + T' = (1 + r) B.
C) G + G' = T - T'.
D) B = G - T.
E) G' = T' + (1 + r) B.

Correct Answer:

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