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.

Question

Quizplus · Accepted Answer

The payment of salaries to soldiers in the military is an example of government purchases.

Which of the Following Would Increase the Government Purchases Component