Transfer Payments Are Not Part of Government Expenditure on Goods

question 79

Multiple Choice

Transfer payments are not part of government expenditure on goods and services because transfer payments

• A) are not predictable given the nature of their appropriation and allocation.
• B) do not represent the purchase of a final good or service.
• C) are not always spent on goods produced in the U.S.
• D) The premise of the question is incorrect because transfer payments are part of government purchases of goods and services.

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