Assume Congress enacts a $10 billion increase in spending and a $10 billion tax increase to finance the additional government spending. The result of this balanced-budget approach is a:

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The balanced-budget multiplier is typically equal to 1, meaning that a $10 billion increase in government spending and a $10 billion tax increase would result in a $10 billion increase in aggregate demand.

Assume Congress Enacts a $10 Billion Increase in Spending and a $10