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If We Assume That Trt=ΔMt=0T r _ { t } = \Delta M _ { t } = 0

Question 5

Multiple Choice

If we assume that Trt=ΔMt=0T r _ { t } = \Delta M _ { t } = 0 , which of the following represents the government's budget constraint?


A) Gt+iBt=Tt+ΔBtG _ { t } + i B _ { t } = T _ { t } + \Delta B _ { t }
B) Bt+1=(1+i) Bt+GtTtB _ { t } + 1 = ( 1 + i ) B _ { t } + G _ { t } - T _ { t }
C) Gt=TrtG _ { t } = T r _ { t }
D) Gt=TtG _ { t } = T _ { t }
E) Bt+1=(1+i) Bt+GtB _ { t + 1 } = ( 1 + i ) B _ { t } + G _ { t }

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