The three main categories of government outlays are
A)net interest payments, government investment, and government consumption expenditures.
B)net government subsidies, the government deficit, and government purchases.
C)government purchases, transfer payments, and net interest payments.
D)government consumption expenditures, government investment, and transfer payments.

Question

Quizplus · Accepted Answer

The three main categories of government outlays are government purchases (expenditures on goods and services), transfer payments (payments to individuals and businesses that are not made in exchange for goods and services), and net interest payments (payments on government debt). Option A only includes two out of three categories, while option B is incomplete and includes an incorrect category ("the government deficit" is a measure of the difference between government revenue and expenses, not an outlay category). Option D includes two correct categories but adds government investment, which is not one of the main outlay categories.

The Three Main Categories of Government Outlays Are