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A government budget surplus occurs when a government's revenue exceeds its expenditures, which can lead to reduced borrowing and lower interest rates. This can strengthen the national currency, making exports more expensive and imports cheaper, potentially worsening the trade balance. However, a surplus can also reflect a healthy economy, which may increase domestic consumption and demand for imports, further impacting the trade balance negatively. Ultimately, the relationship between government budget surplus and trade balance is complex and influenced by various economic factors.
What else can I help you with?
What can the government do when it a budget surplus?
Pay back bondholders
Deffrentiate between surplus and deficit?
If the Government expenditures are more than government receipts this situation represents Budget Deficit and if the government expenditures are less than the government revenue or the revenues are more than expenditures, the budget is Surplus.
When the government runs a budget deficit what must it eventually do in order to pay back its debt?
Have a budget surplus
What is it called when the government annually spend more than its receives in revenue?
a federal budget deficit
How does a government budget surplus or deficit impact the loanable funds market?
A government budget surplus increases the supply of loanable funds in the market, leading to lower interest rates. Conversely, a deficit decreases the supply of loanable funds, causing interest rates to rise.
When the government runs a budget deficit what must in eventually do in order to pay back its debt?
have a budget surplus
Can you make a sentence with Budget surplus?
The government could invest now because of the budget surplus that they had.
What was the budget situation of the federal government at the end of the twentieth century?
C. there was a budget surplus
Is Government operating balance and Budget balance the same thing?
sorry not Budget deficit... budget balance
What can the government do when it a budget surplus?
Pay back bondholders
Massive tax cuts during a recession will create?
either a. a budget surplus b. a budget deficit c. a budget balance
Deffrentiate between surplus and deficit?
If the Government expenditures are more than government receipts this situation represents Budget Deficit and if the government expenditures are less than the government revenue or the revenues are more than expenditures, the budget is Surplus.
What is the difference between government spending and borrowing called?
The difference between government spending and borrowing is referred to as the government's budget balance or fiscal balance. When a government spends more than it earns in revenue, it runs a budget deficit, necessitating borrowing to cover the shortfall. Conversely, if it spends less than its revenue, it has a budget surplus, which can be used to pay down existing debt or save for future needs. The balance can provide insight into a government's fiscal health and economic strategy.
What did not contribute to the federal budget surplus in the 1990s?
a decrease in government spending
In what situation would the government use a no bid contract?
when there is a budget surplus
Is Government operating balance and Budget deficit the same thing?
sorry not Budget deficit... budget balance
When the government runs a budget deficit what must it eventually do in order to pay back its debt?
Have a budget surplus
