Bill Clinton's administration experienced a federal budget surplus. Which of the following is therefore correct?
A) The federal budget was still in deficit, but the deficit was smaller in amount than in previous years.
B) The national debt reached record high levels.
C) The national debt held by the public decreaseC.
D) Government expenditure was no longer counted as part of the federal budget.

Question

Quizplus · Accepted Answer

A federal budget surplus means that the government's income (from taxes and other sources) exceeded its expenditures for that fiscal year. This led to a decrease in the national debt held by the public, as the government was able to pay back some of its outstanding debt. Option A is incorrect because a surplus means that the deficit is not just smaller, but it is no longer present. Option B is incorrect because the surplus indicates the opposite of the national debt reaching record high levels. Option D is incorrect because government expenditure is still counted as part of the federal budget.

Bill Clinton's Administration Experienced a Federal Budget Surplus