A budget surplus is created when the government:
A)spends more than it receives in tax revenue
B)buys back more bonds than it issues
C)receives more tax revenue than it spends
D)raises interest rates

Question

Quizplus · Accepted Answer

A budget surplus occurs when the government receives more tax revenue than it spends. This means that the government has more money than it needs to fund its expenses and can use the surplus for other purposes such as paying off debt or investing in infrastructure. Spending more than it receives in tax revenue would result in a budget deficit, while buying back more bonds than it issues or raising interest rates does not necessarily create a budget surplus.

A Budget Surplus Is Created When the Government