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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 8

Question 8

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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