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The government budget constraint says that ________. A.interest on government debt must be paid before tax revenues are spent on goods and services or disbursed

The government budget constraint says that ________.

  • A.interest on government debt must be paid before tax revenues are spent on goods and services or disbursed as transfer payments
  • B.state and local governments, in aggregate, cannot spend more than the federal government
  • C.increases in spending must be matched by increases in revenue
  • D.the difference between spending and revenues must equal the amount of new bond issues

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