Government transfer payments:
A)are included as part of government purchases,
B)G. can be viewed as negative tax payments, T.
C)are received as payment for inputs in the factor market.
D)do not affect the level of public or private saving.

Question

Quizplus · Accepted Answer

Government transfer payments can be viewed as negative tax payments, where individuals are receiving a monetary amount without having to pay taxes on it. Transfer payments do not affect the level of public or private saving and are not included as part of government purchases. Additionally, transfer payments are not payments for inputs in the factor market.

Government Transfer Payments