The government surplus is the same as
A) government saving.
B) private saving.
C) outlays less income.
D) government deficit less government saving.
E) investment income.

Question

Quizplus · Accepted Answer

Government surplus refers to the excess of government revenue over its expenditures. This means that the government is saving money rather than spending or investing it elsewhere. Hence, the government surplus is the same as government saving. Option B is incorrect because private saving refers to the amount of money that households and firms save, which is unrelated to government surplus. Option C is incorrect because outlays less income only reflects the balance of payments for the government. Option D is incorrect because it introduces the concept of government deficit, which is not mentioned in the question. Finally, option E is incorrect because investment income refers to income earned through investment activities and is unrelated to government surplus.

The Government Surplus Is the Same as