Question

Which of the following best describes the economic effect that results from

the government having a budget surplus?
A. Government spending increases, increasing competition for goods
and services and driving prices up.
B. Consumers save more and spend less, enabling long-term
financial planning
C. Overall demand decreases, reducing the incentive for producers to
increase production.
D. Banks have more deposits, enabling them to make more loans to
investors​

Answer 1

Overall demand decreases, reducing the incentive for producers to

increase production.

Step-by-step explanation:

took the test

Answer 2

C. Overall demand decreases reducing production