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What is the difference between federal government purchases​ (spending) and federal government​ expenditures?

1 Answer

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Answer: The correct answer is : The difference is that federal expenses include transfer payments and federal purchases require the government to receive a good or service in return.

Explanation: An expansionary fiscal policy involves the increase of government purchases and/or a decrease in taxes in order to increase aggregate demand.

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User Mark Rotteveel
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