A Budget Surplus

question 120

Multiple Choice

A budget surplus

• A) occurs when government expenditures exceed tax revenues.
• B) occurs when tax revenues exceed government expenditures.
• C) occurs when tax revenues exceed transfer payments.
• D) occurs when monetary policy works in the opposite direction of fiscal policy.
• E) is an impossibility.

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Definitions:

Various

Describing a group composed of many different elements or individuals.

Disconfirming Instances

Disconfirming instances are examples or cases that contradict a hypothesis or theory, providing evidence against its accuracy or generalizability.

Confirming Instances

Examples or occurrences that support a theory or a hypothesis.

Generalization

A broad statement or rule that applies to many examples, derived from specific cases.