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 to foreign holders of U.S. government bonds.
C. The U.S. federal government pays $3 billion in interest on the national debt.
D. The U.S. federal government pays $3 billion in salaries to soldiers in the military.

Answer: D