A consumer's budget constraint in the current period is
A) $c + s = y - t$.
B) $c = y - t$.
C) $c + s = y + t$.
D) $y = c - s$.
E) $y = c + i + g$.

Question

A consumer's budget constraint in the current period is 
A) $c + s = y - t$.
B) $c = y - t$.
C) $c + s = y + t$.
D) $y = c - s$.
E) $y = c + i + g$.

Quizplus · Accepted Answer

The correct equation for a consumer's budget constraint in the current period is $c + s = y - t$, where $c$ represents consumption, $s$ savings, $y$ income, and $t$ taxes. This equation shows that the consumer's income, after taxes, is either consumed or saved.

A Consumer's Budget Constraint in the Current Period Is c+s=y−tc + s = y - tc+s=y−t

A Consumer's Budget Constraint in the Current Period Is $c + s = y - t$