Question

A government budget surplus from reduced government spending​ (no change in net​ taxes) will​ ________ the level of investment in the economy and​ ________ the level of total saving​ (private plus​ public) in the economy.

Answer 1

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.

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.

Answer 2

Answer:

Increase; Increase

Explanation:

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