If a government's income tax receipts exceed its expenditures, the government is running a
A)surplus and is a net borrower of funds.
B)surplus and is a net saver of funds.
C)deficit and is a net borrower of funds.
D)deficit and is a net saver of funds.

Question

Quizplus · Accepted Answer

If a government's income tax receipts exceed its expenditures, it means that the government is running a surplus. A surplus implies that the government is saving funds for future use. Therefore, the correct option is B, which states that the government is a net saver of funds.

If a Government's Income Tax Receipts Exceed Its Expenditures, the Government