Which of the following is the most likely result from an increase in the government's budget surplus?
A)higher interest rates
B)lower imports
C)lower net capital outflows
D)lower domestic investment

Question

Quizplus · Accepted Answer

An increase in the government's budget surplus means the government is spending less than it is collecting in revenue. This reduces the amount of money flowing out of the country to pay for imported goods, resulting in a lower level of imports.

Which of the Following Is the Most Likely Result from an Increase