If net taxes exceed government expenditures, the government sector has a budget ________ and government saving is ________.
A) surplus; positive
B) surplus; negative
C) deficit; positive
D) deficit; negative

Question

Quizplus · Accepted Answer

When net taxes exceed government expenditures, it means the government is collecting more in taxes than it is spending, which results in a budget surplus. Consequently, government saving is positive because it has excess funds.

If Net Taxes Exceed Government Expenditures, the Government Sector Has