Which Fiscal Policy Would Make a Budget Surplus Smaller or a Budget

question 77

Multiple Choice

Which fiscal policy would make a budget surplus smaller or a budget deficit larger?

• A) an increase in government purchases of goods and services
• B) lower government transfers
• C) higher taxes
• D) lower interest rates

---

Definitions:

Beginning Inventory

The value of a company's inventory at the start of an accounting period, used in calculating cost of goods sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead costs.

Purchase Discounts

A deduction from the stated price of goods or services allowed by the seller to the buyer for prompt payment.

Acquisition Cost

The total cost incurred to acquire an asset, including purchase price and all expenses directly tied to the acquisition.