Question

A budget surplus, when a nation spends less than it takes in from taxes, is the opposite of a(n) _________

a) Budget deficit
b) Fiscal deficit
c) Trade deficit
d) Fiscal surplus

Answer 1

A budget surplus is when a nation's tax revenues exceed its expenditures, which is the opposite of a budget deficit. Therefore, the answer to the student's question is a fiscal deficit. The correct option is b.

Step-by-step explanation:

A budget surplus occurs when a nation spends less than it takes in from taxes, and it is the opposite of a budget deficit. A budget deficit happens when government spending exceeds the amount of tax revenue collected within a fiscal year.

To highlight an example, in 2009, the U.S. government experienced its largest budget deficit, spending $1.4 trillion more than it collected in taxes. This was approximately 10 percent of the size of the U.S. Gross Domestic Product (GDP) for that year, marking a significant deficit relative to the nation's GDP.

The correct answer to the question is: A budget surplus, when a nation spends less than it takes in from taxes, is the opposite of a(n) (b) Fiscal deficit.