Which of the Following Statements Characterizes Government Transfer Payment Spending

question 26

Multiple Choice

Which of the following statements characterizes government transfer payment spending in the United States between 1960 and 2011?

• A) Transfer payment spending by the federal government and by state and local governments has decreased as a percentage of GDP.
• B) Transfer payment spending by the federal government and by state and local governments has about tripled as a percentage of GDP.
• C) Transfer payment spending by the federal government and by state and local governments has remained constant as a percentage of GDP.
• D) Transfer payment spending by the federal government and by state and local governments has fluctuated widely over this period.

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Definitions:

Limit Switch

A limit switch is a device used to detect the physical presence or position of an object, often used to control machinery and ensure operations within safe bounds.

Loanable Funds

The money available for borrowing. The market for loanable funds is where borrowers and lenders interact, determining the market interest rate.

Interest Rate

The percentage charged on borrowed money, paid by the borrower to the lender, or earned through deposit or investment, typically expressed on an annual basis.

Loanable Funds

The supply of capital available for borrowing, influenced by interest rates and financial markets, which facilitates investments and purchases.