Government Purchases Are Defined As

Multiple Choice

Government purchases are defined as:

A) the sum of purchases of goods and services from firms by government agencies and the total value of output produced by government agencies.
B) the sum of purchases of goods and services from firms by the government and the value of transfer payments made to government to its citizens.
C) the sum of purchase of final goods and service from firms by government agencies and the payment of interests on loans undertaken by the government.
D) the purchase of final goods and service from firms by government agencies excluding the value of output produced by government agencies.