Which of the Following Would Increase the Government Purchases Component

question 148

Multiple Choice

Which of the following would increase the government purchases component of Canada's GDP?

• A) The federal government pays $3 billion in pensions to government workers.
• B) The federal government pays $3 billion in interest on the national debt.
• C) The federal government pays $3 billion in salaries to soldiers in the military.
• D) The federal government pays $3 billion in interest to foreign holders of Canadian government bonds.
• E) The federal government pays $3 billion to Employment Insurance recipients.