When tax revenues exceed outlays, the government has a__________ , and when outlays exceed tax revenues, the government has a__________ .

Question

Quizplus · Accepted Answer

A budget surplus occurs when tax revenues exceed government outlays, meaning that the government has extra funds available. A budget deficit occurs when outlays exceed tax revenues, meaning that the government must borrow funds to finance its spending.

When Tax Revenues Exceed Outlays, the Government Has A__________