The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is_____.

A) a decrease in consumption
B) an increase in government spending
C) an increase in investment
D) a decrease in investment
E) nonexistent,since no real goods and services have been produced

The purchase of a government bond does not directly affect GDP because it is a financial transaction and does not involve the production of goods or services. GDP measures the value of all final goods and services produced within a country's borders in a given time period, and financial transactions like buying bonds do not count towards this measure.