Multiple Choice
The government's present value budget constraint states that
A) taxes must equal government spending in each period.
B) the present value of government spending must be equal to the present value of consumers' disposable incomes.
C) the present value of government spending must be equal to the present value of taxes.
D) the government may run deficits each and every year, as long as the deficits are sufficiently small.
Correct Answer:
Verified
Correct Answer:
Verified
Q42: If we represents a two-period consumer's lifetime
Q43: If we represents a two-period consumer's lifetime
Q44: If government spending is held constant and
Q45: In the data,which of the following is
Q46: A permanent increase in income leads to<br>A)
Q48: Savings in our model are<br>A) durable consumption.<br>B)
Q49: If the interest rate increases,lifetime wealth (we)<br>A)
Q50: In the basic two-period model,<br>A) credit markets
Q51: A temporary decrease in taxes leads to<br>A)
Q52: An increase in second-period income results in<br>A)