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The government's present value budget constraint states that

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The government's present value budget constraint states that

The government's present value budget constraint states that
A) taxes must equal government spending in each period.
B) the government may run deficits each and every year, as long as the deficits are sufficiently small.
C) the present value of government spending must be equal to the present value of consumers' disposable incomes.
D) the present value of government spending must be equal to the present value of taxes.

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Macroeconomics

Edition: 5^th

Author: Williamson

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