Which of the Following Is the Largest Category of Federal

question 121

Multiple Choice

Which of the following is the largest category of federal government expenditures?

• A)defense spending
• B)transfer payments
• C)interest on the debt
• D)grants to state and local governments

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Definitions:

Net Capital Outflow

The net flow of funds invested abroad by a country, over a specific time period, typically calculated as the difference between domestic savings and investment.

GDP

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period, serving as a broad indicator of economic health.

Consumption Expenditures

The total amount spent by consumers on goods and services.

Net Capital Outflow

The investment gap where residents of a country engage in foreign asset acquisition versus foreign entities buying up local assets.