A government budget surplus may enable all of the following except
A)A decrease in taxes.
B)An increase in income transfers.
C)An increase in expenditures on goods and services.
D)A decrease in the money supply.

Question

Quizplus · Accepted Answer

A government budget surplus typically results in a decrease in the money supply as the government is essentially taking in more money (through taxes and other revenue sources) than it is spending. This decrease in the money supply can help to control inflation by reducing the amount of money available for consumers to spend, but it does not typically enable an increase in expenditures on goods and services or income transfers. Additionally, a budget surplus may enable a decrease in taxes, but this is not guaranteed and depends on the priorities of the government in power.

A Government Budget Surplus May Enable All of the Following