A constitutional amendment is passed that requires the government to have an annually balanced budget in the sense that changes in spending should be matched by equivalent changes in taxes.Should the government desire to increase GDP by $25 billion and meet the provisions of the law, it
A)cannot possibly reach its objective without breaking the law.
B)could increase spending by $25 billion and reduce taxes by $25 billion.
C)could increase spending by $25 billion and increase taxes by $25 billion.
D)could increase spending by $30 billion and increase taxes by $25 billion.

Question

Quizplus · Accepted Answer

Increasing both spending and taxes by $25 billion would balance the budget while potentially increasing GDP due to the multiplier effect of government spending.

A Constitutional Amendment Is Passed That Requires the Government to Have