An Implication of the Intertemporal Budget Constraint Is That

Multiple Choice

An implication of the intertemporal budget constraint is that:

A) the government can borrow only as much as it can credibly pay back.
B) the government can borrow as much as it wants.
C) the government must always have a balanced budget.
D) the government must balance its budget over the business cycle.
E) all generations pay the same amount of taxes.