An increase in the government's budget surplus means
A)public saving is greater than $0 and increasing.
B)public saving is greater than $0 and decreasing.
C)public saving is less than $0 and increasing.
D)public saving is less than $0 and decreasing.

Question

Quizplus · Accepted Answer

An increase in the government's budget surplus means that the government is collecting more in revenue than it is spending. This results in an increase in public saving, which is the amount of income that households and businesses save after paying taxes and consuming goods and services. Therefore, the correct choice is A, which indicates that public saving is greater than $0 and increasing.

An Increase in the Government's Budget Surplus Means