Government transfer payments
A. are subtracted from national income to obtain disposable income.
B. can be considered as negative taxes.
C. intervene between national product and disposable income in the same way as taxes.
D. are counted the same as taxes in computing national income.
Answer: B
You might also like to view...
Based on the rising housing prices of 2000-2005, many buyers opted for interest-only loans and variable rate mortgages with little or no down payment because
a. they expected short-term interest rates to fall substantially in the future and this would reduce their monthly mortgage payment in the years ahead. b. variable rate mortgages are a good way to reduce the risk accompanying your investment when you plan to stay in the house for a long time. c. they thought housing prices would continue to rise and therefore they would be able to sell the house for a profit within a couple of years. d. they could easily recoup their investment, even if there was a downturn in housing prices in the future.
If a dollar buys more corn in the U.S. than in Mexico, then
a. the real exchange rate is greater than 1; a profit might be made by buying corn in the U.S. and selling it in Mexico. b. the real exchange rate is greater than 1; a profit might be made by buying corn in Mexico and selling it in the U.S. c. the real exchange rate is less than 1; a profit might be made by buying corn in the U.S. and selling it in Mexico. d. the real exchange rate is less than 1; a profit might be made by buying corn in Mexico and selling it in the U.S.