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.

Question

Quizplus · Accepted Answer

A large, expected budget surplus indicates that the government is planning to spend less than it earns, which is a characteristic of a contractionary fiscal stance. This approach typically involves reducing government spending, increasing taxes, or a combination of both to decrease the fiscal deficit or increase the surplus.

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