Subtracting government investment from government purchases gives us the amount of government
A)outlays.
B)primary expenditures.
C)secondary spending.
D)consumption expenditures.

Question

Quizplus · Accepted Answer

Government purchases comprise both consumption expenditures and investment expenditures. Thus, subtracting government investment (which is part of government purchases) leaves us with government consumption expenditures, also known as primary expenditures. Therefore, neither A, B nor C is the correct answer. The correct option is D - consumption expenditures.

Subtracting Government Investment from Government Purchases Gives Us the Amount