For each of the following transactions, state the effect both on U.S. GDP and on the...

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For each of the following transactions, state the effect both on U.S. GDP and on the four components of aggregate expenditure d. Your mother-in-laws car rental business buys a new car imported from Sweden. U.S. GDP (Click to select) . Of the four com

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Answer 1

Answer #1

1 - GDP increases

Consumption increases but net export do not change

2 - GDP will not change

Consumption rises and net export fall

3 - GDP will increase

Investment rises and net export will not change

4 - GDP will not change

Investment rises and net export falls

5 - GDP will rise

Net export do not change and government expenditure rises

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Answer 2

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