Question

The government sector balance is equal to net taxes​ ________ government expenditure on goods and services. If that number is​ ________, a government sector surplus is lent to other​ sectors; if that number is​ ________, borrowing from other sectors must finance a government deficit.

Answer 1

Answer:

less

positive

negative

Explanation:

The government sector balance is income from taxes less government spending

Government sector deficit occurs when government spending exceeds income of the government.

When deficit increases, debt increases. This is because a deficit would need to be funded by additional borrowing

When there is a surplus, government spending is less than the income of the government. Government is able to lend to other sectors