Business, 07.05.2021 01:30 jujudad0ll

It would compel the government to cut spending to offset lost tax revenues, which decline during recessions. prevent the government from employing an expansionary fiscal policy, since increased government spending would have to be offset by increased taxes. require the government to increase spending to match increased tax revenues, pushing up interest rates and crowding out private spending. force the Fed to pursue an expansionary monetary policy, which would cause inflation, undermining economic growth.

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It would compel the government to cut spending to offset lost tax revenues, which decline during rec...