Expenditures such as Social Security benefits, farm subsidies and grants are considered
A) debt interest
B) transfer payments
C) expenditures on goods and services
D) debt reduction

Question

Quizplus · Accepted Answer

Transfer payments are government spending that transfers money from one group to another without any goods or services being exchanged. Social Security benefits, farm subsidies and grants are considered transfer payments as they are payments made by the government to certain individuals or groups to assist with financial needs or stimulate economic activity.

Expenditures Such as Social Security Benefits, Farm Subsidies and Grants