A federal budget surplus can lead to more credit being available for productive activity.

Question

Quizplus · Accepted Answer

When the government has a budget surplus, it means it has more revenue than expenses. This can lead to a decrease in government borrowing, which can free up credit for other borrowers, including businesses and individuals. This increased credit availability can, in turn, lead to more productive activity and economic growth.

A Federal Budget Surplus Can Lead to More Credit Being