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Economics Question Help?

Hey, I found a past paper question -

A government takes decisions to target a budget surplus, this is an example of:

a) Contractionary monetary policy
b) Discretionary fiscal policy
c) Expansionary fiscal policy
d) Expansionary monetary policy

Immediately, I eliminated monetary policy (so not A or D), leaving B or C. From the phrasing of the question, I am lead to believe that it means REDUCING/REMOVING a budget surplus. Hence I put C (less tax, more spending = lower surplus/deficit). However, mark scheme says B - Why?
Original post by crashcody
Hey, I found a past paper question -

A government takes decisions to target a budget surplus, this is an example of:

a) Contractionary monetary policy
b) Discretionary fiscal policy
c) Expansionary fiscal policy
d) Expansionary monetary policy

Immediately, I eliminated monetary policy (so not A or D), leaving B or C. From the phrasing of the question, I am lead to believe that it means REDUCING/REMOVING a budget surplus. Hence I put C (less tax, more spending = lower surplus/deficit). However, mark scheme says B - Why?

I would read it as "to target a budget surplus" means that the aim is a budget surplus.
(edited 2 years ago)
Reply 2
Original post by BlueChicken
I would read it as "to target a budget surplus" means that the aim is a budget surplus.

Ok, that makes sense, thank you. I think I am used to it being the other way round (etc 'Target a budget deficit' would refer to removing one'), oops : )
Original post by crashcody
Ok, that makes sense, thank you. I think I am used to it being the other way round (etc 'Target a budget deficit' would refer to removing one'), oops : )

yes, it's not really the best wording. It would be helpful if it said " the government is aiming for a budget surplus. What is the best policy to achieve this?" or something like that. Good luck with it!

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