Transfer Payments

question 49

Multiple Choice

Transfer payments

• A)are payments that flow from government to households.
• B)are not made in exchange for currently produced goods or services.
• C)alter household income,but they do not reflect the economy's production.
• D)All of the above are correct.

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Definitions:

Yield

The earnings from an investment, like dividends or interest, shown as a percentage of the investment's original cost or its current market valuation.

Perpetuity

A type of financial instrument that provides an infinite stream of interest payments.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment's cost or current market value.

Zero-coupon Bond

A bond that does not pay periodic interest and is sold at a discount to its face value, with the full face value repaid at maturity.