Question

A net exports deficit will become a surplus if?

Answer 1

A net exports deficit will become a surplus if the government budget deficit is turned into a surplus and the private sector has a surplus

An item or resource that has more than is currently being used is said to have a surplus. A surplus can relate to a wide range of things, including money, goods, capital, and profits. A surplus in the context of inventories refers to items that are still on store shelves but have not yet been purchased.

A surplus in a fiscal sense happens when income is greater than outlays. Governments may also have a budget surplus if there are any tax revenues left over after all expenditures for government programmes have been paid in full.

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