If the federal government runs a surplus,

Question

If the federal government runs a surplus,​

Quizplus · Accepted Answer

A surplus occurs when government receipts exceed its disbursements, meaning that the government is taking in more money than it spends. This can result in the government paying down debt or building up savings. Options A and C are incorrect because a surplus would mean that expenditures are less than taxes and debt does not need to be issued. Option D is incorrect because the Federal Reserve buying bonds would not necessarily lead to a federal surplus, as it could also be purchasing bonds to stimulate the economy.

If the Federal Government Runs a Surplus,​

If the Federal Government Runs a Surplus,