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Suppose the Government Share of GDP Is 25 Percent and the Consumption,investment,and

Question 99

Multiple Choice

Suppose the government share of GDP is 25 percent and the consumption,investment,and net export shares of GDP are 60,12,and 3 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 25 percent.
E) All of these

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