Question

The budget under which the government may spend an amount equal to the revenue it collects is referred to as a ...... Budget.

• A. Surplus
• B. Deficit
• C. Balanced
• D. Deflationary

Hint:

In a balanced budget, the total expenditure equals total revenue, which is a key concept in fiscal policy.

Answer 1

The Correct Option is C

A balanced budget occurs when government expenditures equal government revenue. A surplus budget signifies spending below revenue, while a deficit budget indicates spending exceeding revenue.