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13 May, 09:03

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

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  1. 13 May, 09:32
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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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