In Which of the Following Situations Is a Budget Surplus

question 140

Multiple Choice

In which of the following situations is a budget surplus most likely to occur?

• A)When fiscal policy is expansionary
• B)When the economy is contracting
• C)When fiscal policy is expansionary and the economy is contracting
• D)When fiscal policy is contractionary and the economy is expanding

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Definitions:

Major Line of Business

A Major Line of Business is a primary segment or activity from which a company generates a significant portion of its revenue.

Major Geographical Area

A significant region or territory in which a business operates, often used in financial reporting to segment results by location.

Held for Future Use

Assets that are not currently utilized in operations but are retained for potential future benefit or use within the organization.

Carrying Amount

The value at which an asset is recognized on the balance sheet after deducting depreciation, amortization, or impairment costs.