--2) Which of these is MOST LIKELY a result of a high unemployment rate in the United States? A) increased revenues B) increased demand for consumer goods C) increased production of capital goods D) greater government expenditures for transfer payments?
The answer that most likely reflects the result of high unemployment rate in the US is D) greater government expenditures for transfer payments
It is a widely process used by the government when unemployment rates are high, but it is also applies for old age or disability pensions, student grants. In synthesis, government transfer payments as they are also known are a way to redistribute money through programs as the ones previously shown. They are income to individuals for which no current good or service is expected in return.
There are several forms of transfer payments which include:
• Disability insurance as the most common
• Medical benefits as the second most common
Unemployment is the third most common and it includes state and federal unemployment.
