Consider the Following Three Items of Spending by the Government

question 75

Multiple Choice

Consider the following three items of spending by the government: (i) the federal government pays a $500 unemployment benefit to an unemployed person; (ii) the federal government makes a $2,000 salary payment to a Navy lieutenant; (iii) the city of Bozeman,Montana makes a $10,000 payment to ABC Lighting Company for street lights in Bozeman.Which of these payments contributes directly to government purchases in the national income accounts?

• A)only item (i)
• B)only item (ii)
• C)only items (i)and (ii)
• D)only items (ii)and (iii)

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