When a Government Runs a Surplus

question 6

Multiple Choice

When a government runs a surplus

• A) its debt increases.
• B) it must raise taxes.
• C) its debt decreases.
• D) it must cut spending.

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or confidential information.

Duress

Compulsion, force, or pressure exerted upon a person to coerce them into performing an act against their will or judgment.

Public Policy

Principals and standards considered to be in the interests of the public and used as a guide for lawmaking.

Morally Reprehensible

Actions or behaviors that are considered extremely unacceptable by societal ethical standards.