Question

What is the difference between federal purchases and federal​ expenditures?

Answer 1

What is the difference between federal purchases and federal​ expenditures? Federal purchases require that the government receives a good or service in​ return, whereas federal expenditures exclude transfer payments. In this case, another way to remember the two are that federal purchase requires a purchase to be made for a good or service. A federal expenditure requires no purchase to be made but a transfer of payments to happen.