What are the main categories of the federal government outlays?

Question

Quizplus · Accepted Answer

The three main categories of federal government outlays are transfer payments (such as Social Security and Medicare), expenditures on goods and services (such as defense spending), and debt interest (payments on the national debt). Option B is incorrect because indirect taxes and farmers' subsidies are not major categories of federal government outlays. Option C is incorrect because personal income taxes are a source of revenue, not an outlay category. Option D is incorrect because investment income is also a revenue source, not an outlay category.

What Are the Main Categories of the Federal Government Outlays