Question #171

Imagine the national government ran a surplus (tax revenue greater than spending) last year of say $20 billion and then electronically deposited the sum in a local commercial bank such that it now had a $20 billion bank balance in the private sector. This is one example where a budget surplus would contribute to national saving and allow the government to purchase more next period for a given tax take.

Answer #1263

Answer: False

Explanation

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