The government saves when it:

Question

Quizplus · Accepted Answer

When the government has a budget surplus, it means that it is collecting more revenue through taxes and other sources than it is spending on programs and services. This allows the government to save money that can be used for future projects or to pay down debt. A balanced budget, by definition, means that spending and revenue are equal, so there is no surplus to save. A budget deficit means that the government is spending more than it is taking in, resulting in increased debt. Borrowing by selling bonds may provide temporary funding for the government, but it also increases the overall debt and interest payments.

The Government Saves When It