Balanced-budget changes in fiscal policy imply that an increase in government spending is exactly matched by an equal increase in taxes.

Name: Balanced-budget changes in fiscal policy imply that an increase in government spending is exactly matched by an equal increase in taxes.
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Question

Quizplus · Accepted Answer

Balanced-budget changes in fiscal policy ensure that there is no deficit or surplus in the budget by matching any increase in government spending with an equal increase in taxes. Therefore, the statement is true.

Balanced-Budget Changes in Fiscal Policy Imply That an Increase in Government