Economics 2281 · O Level · Fiscal policy

Fiscal policy — practice question

A government’s revenue increased by $8\%$ to $\$3.25$ trillion, while its expenditure fell to $\$3.69$ trillion. What conclusion can be drawn from this?

  • Adeficit and increase deficit
  • Bdeficit and reduce deficit
  • Csurplus and increase surplus
  • Dsurplus and reduce surplus

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