Which of the following is NOT a characteristic of the government purchase function?
A) Government purchases are autonomous with respect to current income.
B) Government purchases exclude transfer payments.
C) Government purchases are directly related to government income.
D) Government purchases have increased over the last 40 years.

Question

Which of the following is NOT a characteristic of the government purchase function?  
A) Government purchases are autonomous with respect to current income. 
B) Government purchases exclude transfer payments. 
C) Government purchases are directly related to government income. 
D) Government purchases have increased over the last 40 years.

Quizplus · Accepted Answer

Government purchases are not directly related to government income. They can be financed through taxes, borrowing, or printing money, and their level depends on government policy objectives and economic conditions. Option A is correct as government purchases are not influenced by changes in income levels. Option B is correct as transfer payments, such as Social Security or welfare, are not included in government purchases. Option D is also correct as government purchases have increased over the last few decades due to expansionary fiscal policies and an increase in government programs and services.

Which of the Following Is NOT a Characteristic of the Government