A budget surplus exists when A)tax receipts government expenditures + transfers. C)government expenditures − transfers tax receipts. D)government expenditures transfers + tax receipts.

Question

A budget surplus exists when
A)tax receipts < government expenditures + transfers.
B)tax receipts > government expenditures + transfers.
C)government expenditures − transfers > tax receipts.
D)government expenditures > transfers + tax receipts.

Quizplus · Accepted Answer

A budget surplus exists when tax receipts exceed government expenditures and transfers. This means that the government is collecting more revenue than it is spending, which can be used to pay down debt or invest in other areas. The other choices listed all involve a deficit, where the government is spending more than it is taking in.

A Budget Surplus Exists When