Which of the Following Is Not Considered a Unilateral Transfer

question 7

Multiple Choice

Which of the following is not considered a unilateral transfer?

• A) income earned from foreign investments
• B) foreign aid
• C) personal gifts to friends or family abroad
• D) institutional charitable donations
• E) government transfers to foreign residents

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Definitions:

Aggregate Expenditures

The total amount of spending on goods and services in an economy at a given overall price level and in a given time period.

Spending Multiplier

the ratio of the change in total national income to the initial change in spending that brought it about, illustrating how initial spending leads to increased total spending in an economy.

Aggregate Spending

Aggregate spending is the total amount of spending in an economy, including consumption, investment, government expenditures, and net exports during a specific period.

Autonomous Saving

The portion of savings of an economy that is independent of income levels, often related to baseline savings by consumers and companies.