If the federal government is running a budget surplus,
A) its expenditures must be greater than its revenues.
B) the supply of money will decline.
C) it will be able to reduce its outstanding debt.
D) the U.S. Treasury will have to borrow additional funds in order to cover the surplus.

Question

Quizplus · Accepted Answer

A budget surplus means that the government is collecting more revenue than it is spending. This allows the government to reduce its outstanding debt by using the surplus to pay off some of the debt.

If the Federal Government Is Running a Budget Surplus