question archive State true or false and justify your answer: If there is a Federal budget surplus, then government revenues are greater than its expenditures
State true or false and justify your answer: If there is a Federal budget surplus, then government revenues are greater than its expenditures
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State true or false and justify your answer:
If there is a Federal budget surplus, then government revenues are greater than its expenditures.
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Answer: True
When government revenue is greater than expenditures, there exists a Federal budget surplus. This is because the government is collecting more money than it is spending and thus there is a net inflow into the government before borrowing/paying down debt. When a surplus occurs, usually the government pays of some of its public debt.
