if-a-government-increases-tax-revenue-by-100-billion-and-decreases-spending-by-5

Question

If a government increases tax revenue by $$100 billion and decreases spending by 50 $$billion, what is the effect on the budget surplus or deficit?

Accepted Answer

The budget surplus increases by $150 billion.

Answer

The budget deficit decreases by $150 billion.

Answer

The budget deficit increases by $150 billion.

Answer

The budget surplus decreases by $150 billion.

If a government increases tax revenue by \$100 billion and decreases spending by \$50 billion, what is the effect on the budget surplus or deficit?