Question

Which of the following is incorrect regarding government spending?
[1] Promises by the government during elections could put pressure on government spending.
[2] Government spending largely consists of spending on investment (capital goods).
[3] The government promotes income redistribution through taxation and government transfers.
[4] In a mixed economy the government can intervene by providing funds for public goods and
services (like parks and defence).

Answer 1

[1] Promises by the government during elections could put pressure on government spending.