Arguments against the balanced budget amendment include which of the following?
A) A balanced budget amendment would exert fiscal discipline on the federal government.
B) A balanced budget amendment would increase capital formation.
C) A balanced budget amendment would reduce the taxation burden on future generations.
D) A balanced budget amendment would limit Congress' ability to use fiscal policy during a recession.

Question

Quizplus · Accepted Answer

A balanced budget amendment would limit Congress' ability to use fiscal policy during a recession. During a recession, deficit spending is often necessary to stimulate the economy and create jobs. A balanced budget amendment would prevent this type of spending, potentially making the recession deeper and longer. The other options (A, B, and C) are arguments in favor of the balanced budget amendment.

Arguments Against the Balanced Budget Amendment Include Which of the Following