If net taxes exceed government expenditures, the government sector has a budget _______ and government saving is _______.
A)deficit; positive
B)deficit; negative
C)surplus; negative
D)balance that is zero; zero
E)surplus; positive

Question

Quizplus · Accepted Answer

When net taxes exceed government expenditures, it means the government is collecting more in taxes than it is spending, which results in a budget surplus. In this scenario, government saving is positive because it has excess funds.

If Net Taxes Exceed Government Expenditures, the Government Sector Has