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The Government's Intertemporal Budget Constraint Is a Simple Two-Period Case G1+G2(1+i)+(1+i)B1=0G _ { 1 } + \frac { G _ { 2 } } { ( 1 + i ) } + ( 1 + i ) B _ { 1 } = 0

Question 88

Multiple Choice

The government's intertemporal budget constraint is a simple two-period case in which:


A) G1+G2(1+i) +(1+i) B1=0G _ { 1 } + \frac { G _ { 2 } } { ( 1 + i ) } + ( 1 + i ) B _ { 1 } = 0
B) G1+G2+(1+i) B1=T1+T2G _ { 1 } + G _ { 2 } + ( 1 + i ) B _ { 1 } = T _ { 1 } + T _ { 2 }
C) G1+G2(1+i) +(1+i) B1=T1+T2(1+i) G _ { 1 } + \frac { G _ { 2 } } { ( 1 + i ) } + ( 1 + i ) B _ { 1 } = T _ { 1 } + \frac { T _ { 2 } } { ( 1 + i ) }
D) G1(1+i) +G2+(1+i) B1=T1+T2(1+i) \frac { G _ { 1 } } { ( 1 + i ) } + G _ { 2 } + ( 1 + i ) B _ { 1 } = T _ { 1 } + \frac { T _ { 2 } } { ( 1 + i ) }
E) G1+G2=T1+T2G _ { 1 } + G _ { 2 } = T _ { 1 } + T _ { 2 }

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