The government is most likely to save money for the future when O it has a budget surplus.
O it has enough to cover expenses.
O it increases income taxes.
O it borrows money.

The government borrows funds by selling Treasury bonds, notes, and bills. When governments run budget surpluses, what is done with the extra funds? The funds can be used to pay down the national debt or else be refunded to the taxpayers. You just studied 52 terms!

Explanation:

Why is a budget surplus not necessarily a good thing? It means tax rates may be too high. Why does the federal debt tend to increase during periods of recession? Economic activity decreases, which decreases revenues and increases outlays.

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