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    a)Is fiscal surplus and budget surplus the same thing? If not, what is the difference between the two?

    b)what may be the consequences of having a fiscal surplus?
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    (Original post by CommonSenseLess)
    a)Is fiscal surplus and budget surplus the same thing? If not, what is the difference between the two?

    b)what may be the consequences of having a fiscal surplus?
    You'd have more luck in the study help section in future.

    I think that the two are the same, but I'm not sure.

    The consequences of this could be:

    Governments often use surpluses to buy debt from other countries, and in order to buy foreign currency for said purchases they have to first sell their own currency. This devalues the currency, meaning that exports are more competitive but it means that it becomes more expensive to import.

    Lower interest payments / reduction in national debt.

    But they might want you to talk more about why there is a budget surplus, there would be consequences to growth if it was because of higher taxation or lower spending.
 
 
 
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