The government budget constraint says that ________. A) the differenc

The government budget constraint says that ________.

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

ANSWER

A