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Which of the following statements is true?
An increase in transfer payments will have a greater effect on real GDP than an equal increase in
government spending on goods and services
The presence of a deficit budget is proof that the government is trying to stimulate aggregate
demand
Because transfer payments typically rise during an economic recovery, they help to stabilize the
economy
None of the statements given are true.

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  • 1. Which of the following statements is true? An increase in transfer payments will have a greater effect on real GDP than an equal increase in government spending on goods and services The presence of a deficit budget is proof that the government is trying to stimulate aggregate demand Because transfer payments typically rise during an economic recovery, they help to stabilize the economy None of the statements given are true.