Why does a balanced budget tend to stimulate the economy


Problem

1. What is the relationship between fiscal changes and the multiplier effect? Why does a balanced budget tend to stimulate the economy?

2. When might more government borrowing be inadvisable?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Why does a balanced budget tend to stimulate the economy
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