To stimulate economic growth

To redistribute income

To provide public goods and services

To regulate the economy

Transfer payments

Capital expenditures

Consumption expenditures

Investment expenditures

Transfer payments are given to individuals, while government purchases are given to businesses.

Transfer payments are not counted as government spending, while government purchases are.

Transfer payments are given to individuals who are in need, while government purchases are given to businesses that are profitable.

Transfer payments are given to individuals who are not working, while government purchases are given to businesses that are hiring.

The increase in economic output that results from an increase in government spending

The decrease in economic output that results from an increase in government spending

The increase in government spending that results from an increase in economic output

The decrease in government spending that results from an increase in economic output

The increase in interest rates that results from an increase in government spending

The decrease in interest rates that results from an increase in government spending

The increase in government spending that results from an increase in interest rates

The decrease in government spending that results from an increase in interest rates

The increase in economic output that results from a balanced budget increase in government spending

The decrease in economic output that results from a balanced budget increase in government spending

The increase in government spending that results from a balanced budget increase in economic output

The decrease in government spending that results from a balanced budget increase in economic output

The budget deficit that would exist if the economy were at full employment

The budget deficit that would exist if the economy were in recession

The budget deficit that would exist if the government were to balance its budget

The budget deficit that would exist if the government were to run a surplus

The budget deficit that is caused by the business cycle

The budget deficit that is caused by government spending

The budget deficit that is caused by tax cuts

The budget deficit that is caused by wars

The budget deficit that excludes interest payments on the national debt

The budget deficit that excludes transfer payments

The budget deficit that excludes government purchases

The budget deficit that excludes tax cuts

The budget deficit that includes all government spending and revenue

The budget deficit that excludes interest payments on the national debt

The budget deficit that excludes transfer payments

The budget deficit that excludes government purchases

The budget deficit is the amount of money that the government borrows in a year, while the national debt is the total amount of money that the government owes.

The budget deficit is the amount of money that the government spends in a year, while the national debt is the total amount of money that the government has borrowed.

The budget deficit is the amount of money that the government owes to foreign countries, while the national debt is the total amount of money that the government owes to its own citizens.

The budget deficit is the amount of money that the government owes to its own citizens, while the national debt is the total amount of money that the government owes to foreign countries.

The state of the economy

The political ideology of the government

The level of public demand for government services

All of the above

It can stimulate economic growth

It can lead to inflation

It can crowd out private investment

All of the above

The political nature of government spending

The uncertainty of economic conditions

The difficulty of predicting changes in public demand for government services

All of the above