Transfer payments made by the government affect its net tax revenues
A)directly.
B)indirectly through government purchases.
C)indirectly through net exports.
D)indirectly through the investment function.
E)indirectly through the consumption function.

Question

Quizplus · Accepted Answer

Transfer payments made by the government directly affect its net tax revenues by reducing them.

Transfer Payments Made by the Government Affect Its Net Tax