Consider the Following Variables: G = Government Purchases

Multiple Choice

Consider the following variables: G = government purchases
I = interest rate on government debt
D = stock of government debt
T = net tax revenue
The government's budget constraint can be expressed as

A) (G + iD) = borrowing - T.
B) (G + iD) - T = borrowing.
C) (G + iD) + T = borrowing.
D) G - T - (iD) = borrowing.
E) (G - iD) = borrowing + T.