If a government has a budget surplus,then public saving
A)is positive and increases national saving.
B)is positive but decreases national saving.
C)is negative and decreases national saving.
D)is negative but increases national saving.

Question

Quizplus · Accepted Answer

A government budget surplus means that the government is taking in more revenue than it is spending. This creates a positive public saving, which increases national saving. National saving is the sum of private saving and public saving, so an increase in public saving will lead to an increase in national saving.

If a Government Has a Budget Surplus,then Public Saving