What is the difference between federal purchases and federal expenditures?

a. federal purchases and federal expenditures both require that the government receives a good or service in return.

b. federal purchases require that the government receives a good or service in return, whereas federal expenditures exclude transfer payments.

c. federal purchases require that the government receives a good or service in return, whereas federal expenditures include transfer payments.

d. the difference between federal purchases and federal expenditures is so small that it is generally ignored?

Question

Lance Lucero

Business

28 August, 16:04

What is the difference between federal purchases and federal expenditures?

a. federal purchases and federal expenditures both require that the government receives a good or service in return.

b. federal purchases require that the government receives a good or service in return, whereas federal expenditures exclude transfer payments.

c. federal purchases require that the government receives a good or service in return, whereas federal expenditures include transfer payments.

d. the difference between federal purchases and federal expenditures is so small that it is generally ignored?

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Answers (1)

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Summer Palmer · Answer 1

What is the difference between federal purchases and federal expenditures? F ederal purchases require that the government receives a good or service in return, whereas federal expenditures exclude transfer payments. In this case, another way to remember the two are that federal purchase requires a purchase to be made for a good or service. A federal expenditure requires no purchase to be made but a transfer of payments to happen.