To Encourage Formation of Small Businesses, the Government Could Provide

Multiple Choice

To encourage formation of small businesses, the government could provide subsidies; these subsidies

A) would be included in GDP because they are part of government purchases.
B) would be included in GDP because they are part of investment expenditures.
C) would not be included in GDP because they are transfer payments.
D) would not be included in GDP because the government raises taxes to pay for them.