Which of the Following Are Effects of an Increase in Government

Multiple Choice

Which of the following are effects of an increase in government spending financed by a tax increase?

A) the tax increase reduces consumption;the change in the interest rate reduces residential construction
B) the tax increase reduces consumption;the change in the interest rate raises residential construction
C) the tax increase raises consumption;the change in the interest rate reduces residential construction.
D) the tax increase raises consumption;the change in the interest rate reduces residential construction