1. Give an example related to the current situation where the government may follow a 'Transfer...

1. Give an example related to the current situation where the government may follow a 'Transfer Promoting Policy' instead of a 'Growth Promoting Policy' in determining who gets the transfer payment.

2.Instead of paying transfer (TR) if the government were to increase government spending (G), what type of crowding out would you expect? Briefly explain.

3. As we have observed recently that, a lot of the assistance from the government is being misappropriated by dishonest individuals and as a result is not reaching the target population. What role can proper institution play to rectify such mishandling of government funds? Explain.

Expert Solution

Rahul Sunny answered 8 months ago

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