If the government is required to balance the budget and the economy falls into a recession, which of the actions is a feasible policy response? O invest in infrastructure O cut spending equal to the reduction in tax revenue O increase government spending to stimulate the economy O cut taxes to encourage consumer spending What is a likely consequence of this policy? Unemployment falls due to the economic stimulus. O Consumer spending increases due to their ability to keep more of their after-tax income. O There is hyperinflation due to an increase in aggregate demand. O The negative consequences of the recession are magnified