1) According to our textbook, most nations that used theCommand Economy modelroutinely had historic records of strong economic growth, enjoyed a much higher standard of living, had large reductions in poverty, and experienced major improvements in economic efficiency.

True or False

2) The U.S. Department of the Treasury recently donated $5 billion incash foreign aidto several Carribbean island nations that were hard hit by deadly hurricanes both last year and this year. The U.S. Treasury Department made it clear that this donation was for humanitarian aid and didn't need to be repaid to the U.S. government. TheCarribbean government could use the money for whatever they thought was necessary.

Conclusion:According to Keynesian theory, this type of government spending will be very effective at stimulating the U.S. economy.

True or False

3) Federal education grant moneygiven to college students is a good example of atransfer payment.

True or False