The federal government runs a budget surplus because:

Question

Quizplus · Accepted Answer

A budget surplus occurs when the government spends less than what it receives in tax revenues. This means that the government is collecting more money than it needs to fund its programs and services, which results in a surplus. Choice A is incorrect because a budget deficit occurs when the government spends more than it receives in tax revenues. Choice C is incorrect because the state of the economy does not necessarily dictate whether there is a budget surplus or deficit. Choice D is incorrect because the buying and selling of bonds is not directly related to the government's budget surplus.

The Federal Government Runs a Budget Surplus Because