If the treasurer announces a large,expected budget surplus for the forthcoming year,this is a sign that the government's fiscal stance will be:
A)expansionary.
B)contractionary.
C)neutral.
D)negative.
E)indeterminate.

Question

Quizplus · Accepted Answer

A budget surplus indicates that the government is collecting more in revenue than it is spending, which typically reflects a contractionary fiscal stance as it reduces the amount of money circulating in the economy.

If the Treasurer Announces a Large,expected Budget Surplus for the Forthcoming