A federal budget surplusA) did not occur in the United States economy during the twentieth century.B) occurs when government expenditures exceed taxation.C) occurs when government tax revenues and expenditures are equal.D) causes the national debt to increase.E) occurs when government expenditures are less than government tax revenues.

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Steven Tirabasso · Accepted Answer

Final Answer : E, Explanation :  A federal budget surplus occurs when government tax revenues are greater than government expenditures, resulting in a positive difference. Therefore, option E is the correct choice as it states that a budget surplus occurs when government expenditures are less than government tax revenues. A budget surplus does not cause the national debt to increase, but rather helps to reduce it. Option A is incorrect as there have been instances of budget surplus in the US economy. Option B is incorrect as it describes a budget deficit, whereas option C describes a balanced budget.

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