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Which of the Following Would Increase the Government Purchases Component

Question 148

Multiple Choice

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.

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