Question

A __________ budget is useful during periods of high inflation.

• A. deficit
• B. balanced
• C. suprlus
• D. zero-based

Answer 1

The correct option is C suprlus

Surplus Budget is the type of budget where the expected government revenue is greater than expected government expenditure due to which there is a surplus in the budget. Surplus budget is regarded as a positive indicator for the economy as it can be used during inflation through increased revenue that can soak liquidity from the economy and decrease the purchasing power.