A budget surplus
A)occurs when the government has debt equal to zero.
B)causes government debt to increase.
C)exists when government spending is greater than tax revenues.
D)reduces the government's debt.

Question

Quizplus · Accepted Answer

A budget surplus occurs when government revenue from taxes and other sources exceeds government spending. This results in extra funds that can be used to pay off government debt or saved for future expenditures. Therefore, a budget surplus reduces the government's debt.

A Budget Surplus