A major distinction between government purchases and government transfer payments is that:
a. government purchases of goods and services have increased more rapidly during the past 20 years than have transfer payments.
b. transfer payments divert resources from private uses to public uses while government purchases do not.
c. government purchases have to be approved by Congress while transfer payments do not.
d. government purchases divert resources from private uses to public uses while transfer payments do not.
Answer: D