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, all else held constant, businesses become more optimistic about the benefits of investment, then

A) investment spending as a share of GDP increases.
B) the nongovernment share of GDP remains constant.
C) the rate of interest increases.
D) the government share of GDP remains at 20 percent.
E) All of these