11:20 V Will 5GE+ Search EOC 7.12 X Unanswered . 1 attempt left Suppose the government sends additional transfer payments to households during a recession. Why might this have little effect on the economy? Transfer payments do not A count as part of GDP so by definition this can't have any effect. Households may anticipate higher taxes in the future to pay off the debt incurred by B sending the transfer payments. The money sent by the government will be saved and not spent. This will only have little C effect if the multiplier is very large (m>3) Submit11:20 V Will 5GE+ Search EOC 7.12 X Unanswered . 1 attempt left Transfer payments do not A count as part of GDP so by definition this can't have any effect. Households may anticipate higher taxes in the future to pay off the debt incurred by B sending the transfer payments. The money sent by the government will be saved and not spent. This will only have little C effect if the multiplier is very large (m>3) Since nothing is produced in D exchange for the transfer payments, the government is not producing any Submit