high government expenditures can lead to a bigger revenue. stimulus. deficit. surplus.

High government expenditures can lead to a bigger deficit. This happens because when the government spends more than it collects in revenue, the gap between spending and income results in a budget deficit, requiring borrowing to cover the difference. Increased government spending without a corresponding increase in revenue typically raises the deficit rather than leading to a surplus or higher revenue directly. Surpluses occur when revenues exceed expenditures, which is the opposite situation. Stimulus refers to government spending intended to boost the economy, which may increase expenditures but does not guarantee higher revenue or surplus—it can increase the deficit initially.