Which of the Following Would Increase the Government Purchases Component

Multiple Choice

Which of the following would increase the government purchases component of U.S.GDP?

A) The U.S.federal government pays $3 billion in pensions to government workers.
B) The U.S.federal government pays $3 billion in interest on the national debt.
C) The U.S.federal government pays $3 billion in salaries to soldiers in the military.
D) The U.S.federal government pays $3 billion in interest to foreign holders of U.S.government bonds.Salaries of government workers are considered to be government purchases, while pensions to government workers are considered transfer payments.