Suppose the Government Share of GDP Is 20 Percent and the Consumption

Multiple Choice

Suppose the government share of GDP is 20 percent and the consumption, investment, and net export shares of GDP are 60, 15, and 5 percent, respectively. If the federal government introduces a national sales tax (a federal tax on consumption) , then we would expect

A) the government share of GDP to increase.
B) the interest rate to decrease.
C) the interest rate to increase.
D) the government share of GDP to decrease.
E) the net consumption share of GDP to increase.