If there was a federal budget surplus and the government decided to either increase spending or decrease taxes,
A)The budget surplus would get smaller.
B)The budget surplus would get larger.
C)The budget surplus would remain unchanged.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

If the government decides to increase spending or decrease taxes, it would result in a decrease in the budget surplus. Increasing spending would mean the government is spending more than what it is earning, and decreasing taxes means the government is earning less revenue. Both scenarios would result in a smaller budget surplus.

If There Was a Federal Budget Surplus and the Government