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Assume an economy exists for 3 periods

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Assume an economy exists for 3 periods. The government's budget balance in period 1 is $150 and the present discounted value of the government's budget balance in period 2 is -$110. If the initial debt is equal to $200, the present discounted value of the government's budget balance in period 3 must be

a. $160
b. -$100
c. -$160
d. $100

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Reference no: EM131756924

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