Question: How would a balanced budget amendment affect a decision byCongress to grant a tax cut during a recession? The government would have to make up

How would a balanced budget amendment affect a decision byCongress to grant a tax cut during a recession?

The government would have to make up the revenue either byraising taxes in a different area or cutting spending.

The government would have to make up the revenue by eithercutting taxes or increasing spending.

The government would have to increase automatic stabilizers inthe economy and reduce discretionary fiscal policy.

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