Answer:
A government budget surplus from reduced government spending (no change in net taxes) will increase the level of investment in the economy and Increase the level of total saving (private plus public) in the economy.
Step-by-step explanation:
A budget surplus is usually used in reference to financial states of governments when the balance is positive. This occurs when budget deficit is eliminated.
The Clinton administration eliminated a large budget deficit, resulting in a surplus. For example, June 2016 was a recent U.S. government budget surplus. The receipts for the year totaled $330 billion, while expenditures for the year were $323 billion. This resulted in a budget surplus of approximately $6 billion.
A budget surplus reflects a positive value and is the sum by which government revenues are greater than government expenditure during a fiscal year.