4
QuizMultiple Choice

Fiscal Policy: Spending

Question 4 • IL-Economics

When revenues are higher than expenditures in a budget, that budget

Answer
A
shows a deficit.
B
is in balance.
C
must be discarded.
D
shows a surplus.

Explanation

A budget has a surplus when revenues are greater than expenditures. Since the budget brings in more money than it spends, it shows a surplus, not a deficit or a balance.

AI-written and checked against the verified answer.

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