The three categories of federal government expenditures,in addition to government purchases,are
A)interest on the national debt,grants to state and local governments,and transfer payments.
B)interest on the national debt,defense spending,and transfer payments.
C)defense spending,budgets of federal agencies,and transfer payments.
D)defense spending,Social Security,and Medicare.

Question

Quizplus · Accepted Answer

Interest on the national debt is a significant expenditure for the federal government, as it owes a large amount of money to creditors. Grants to state and local governments are provided for various purposes, such as education and infrastructure development. Transfer payments include programs like Social Security and welfare benefits, which provide direct financial assistance to individuals and households. These three categories are distinct from government purchases, which include spending on goods and services needed for government operations.

The Three Categories of Federal Government Expenditures,in Addition to Government