Question

Which of these is required to balance the budget for the year?

a. revenue equal to spending
b. revenue greater than spending
c. revenue less than spending
d. no national debt

Answer 1

A sounds fair because it would make sense

Answer 2

Correct option is (a)

Step-by-step explanation:

A budget is said to be balanced when the revenue earned during the period matches the expenses incurred. In case revenue is more than expenses, there is a surplus and when expenses are more than revenue, there is a deficit. Equality between revenue and expenses make the budget balanced. A balanced budget may have revenue more than spending or expenses, but spending should not be more than revenue.

Therefore, revenue should be equal to spending to balance the budget.