Question

Methods of financing government spending are described by an expression called the government budget constraint, which states the following
A. DEFICIT = (G - T) = ΔMB + ΔBONDS.
B. DEFICIT = (G - T) = ΔMB - ΔBONDS.
C. DEFICIT = (G - T) = ΔBONDS - ΔMB.
D. DEFICIT = (G - T) = ΔMB/ΔBONDS.

Answer

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