Consider the Government's Intertemporal Budget Constraint:

Multiple Choice

Consider the government's intertemporal budget constraint: .
Term A is the ________, and term B is the ________.

A) present discounted value of government spending; initial debt
B) total annual spending; deficit
C) initial period's spending; initial debt
D) present value of government spending and taxes; present value of government spending
E) None of these answers is correct.