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Bang-for-the-buck effect on the economy

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Reference no: EM131426764

1. Give 2 reasons why increasing government spending could have a stronger bang-for-the-buck effect on the economy than an equivalent-sized tax cut. (2-3 sentences)

2. How could a balanced budget amendment (requiring a country to always have tax revenue be at least as much as government outlays) make an economy more susceptible to recessions? (3 sentences or less)

Reference no: EM131426764

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