All of the following represent government spending as a part of aggregate demand except for:
A) Federal government spending on roads.
B) State and local government spending on schools.
C) Income transfers.
D) National defense.

Question

Quizplus · Accepted Answer

Income transfers represent a transfer of income from one individual or group to another and do not directly represent government spending as a part of aggregate demand. The other options (federal government spending on roads, state and local government spending on schools, and national defense) represent direct government spending that contributes to aggregate demand.

All of the Following Represent Government Spending as a Part