What state would the federal budget be in if net taxes exceed government purchases?
A) The federal budget would be in deficit.
B) The federal budget would be in surplus.
C) The budget would be balanced.
D) The budget would need to be revised.

Question

What state would the federal budget be in if net taxes exceed government purchases?  
A) The federal budget would be in deficit. 
B) The federal budget would be in surplus. 
C) The budget would be balanced. 
D) The budget would need to be revised.

Quizplus · Accepted Answer

When net taxes exceed government purchases, it means the government is collecting more in taxes than it is spending, which results in a budget surplus.

What State Would the Federal Budget Be in If Net