Higher government transfers or lower taxes make a budget surplus smaller or a budget deficit larger.

Name: Higher government transfers or lower taxes make a budget surplus smaller or a budget deficit larger.
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Question

Quizplus · Accepted Answer

Higher government transfers (which increase spending) and lower taxes (which decrease revenue) both contribute to a larger budget deficit, meaning that the budget surplus becomes smaller or turns into a deficit.

Higher Government Transfers or Lower Taxes Make a Budget Surplus