If increasing the utility of the transfer recipient is the only criterion cared about,then _____.

Question

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A cash payment allows the transfer recipient to use the funds in any way they choose, while an in-kind payment restricts their options to the specific good or service being provided. Thus, a cash payment usually provides higher utility for the recipient, as they have more flexibility in how they use the transfer.

If Increasing the Utility of the Transfer Recipient Is the Only