198k views
2 votes
What is the difference between federal government purchases​ (spending) and federal government​ expenditures?

1 Answer

6 votes

Answer: The correct answer is : The difference is that federal expenses include transfer payments and federal purchases require the government to receive a good or service in return.

Explanation: An expansionary fiscal policy involves the increase of government purchases and/or a decrease in taxes in order to increase aggregate demand.

User Mark Rotteveel
by
7.8k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.