In the Simple Macro Model,how Do Government Transfer Payments to Individuals

question 44

Multiple Choice

In the simple macro model,how do government transfer payments to individuals affect desired aggregate expenditure?

• A)directly
• B)through the consumption function
• C)through business investment
• D)through net exports
• E)through the government's budget deficit

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets compared to its current liabilities.

Financial Statements

Authorized documents reflecting the economic actions and condition of an organization, individual, or different party, often encompassing the balance sheet, income statement, and cash flow statement.

Common Shares

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a residual claim on corporate earnings in the form of dividends.

Total Equity

Represents the value left in a company after all liabilities have been subtracted from assets, essentially the net assets owned by shareholders.